Chapter 1.

Indian steel industry

1.1 Introduction
Steel Industry in India is on an upswing because of the strong global and
domestic demand. India's rapid economic growth and soaring demand by sectors
like infrastructure, real estate and automobiles, at home and abroad, has put
Indian steel industry on the global map. According to the latest report by
International Iron and Steel Institute (IISI), India is the seventh largest steel
producer in the world.

The origin of the modern Indian steel industry can be traced back to 1953 when a
contract for the construction of an integrated steelworks in Rourkela, Orissa was
signed between the Indian government and the German companies Fried Krupp
und Demag AG. The initial plan was an annual capacity of 500,000 tonnes, but
this was subsequently raised to 1 million tonnes. The capacity of Rourkela Steel
Plant (RSP), which belongs to the SAIL (Steel Authority of India Ltd.) group, is
presently about 2 million tonnes. At a very early stage the former USSR and a
British consortium also showed an interest in establishing a modern steel
industry in India. This resulted in the Soviet-aided building of a steel mill with a
capacity of 1 million tonnes in Bhilai and the British-backed construction in
Durgapur of a foundry which also has a million tonne capacity.

The Indian steel industry is organized in three categories i.e., main producers,
other major producers and the secondary producers. The main producers and
other major producers have integrated steel making facility with plant capacities
over 0.5 mt and utilize iron ore and coal/gas for production of steel. The main
producers are Tata Steel, SAIL, and RINL, while the other major producers are

1
ESSAR, ISPAT and JVSL. The secondary sector is dispersed and consists of: (1)
Backward linkage from about 120 sponge iron producers that use iron ore and
non-coking coal, providing feedstock for steel producers; (2) Approximately 650
mini blast furnaces, electric arc furnaces, induction furnaces and energy
optimizing furnaces that use iron ore, sponge iron and melting scrap to produce
steel; and (3) Forward linkage with about 1,200 re-rollers that roll out semis into
finished steel products for consumer use.

1.2 Strengths of Indian Steel Industry:

Low labour wage rates

Abundance of quality manpower

Mature production base

Positive stimuli from construction industry

Booming automobile industry

1.3 Structural Weaknesses of Indian Steel Industry:

1. Although India has modernized its steelmaking considerably, however, nearly

6% of its crude steel is still produced using the outdated open-hearth process.

2. Labour productivity in India is still very low. According to an estimate crude

steel output at the biggest Indian steelmaker is roughly 144 tones per worker per
year, whereas in Western Europe the figure is around 600 tones.

3. India has to do a lot of catching in the production of stainless steel, which is

primarily required by the plant and equipment, pharmaceutical and chemical
industries.

4. Steel production in India is also hampered by power shortages.

2
5. India is deficient in raw materials required by the steel industry. Iron ore
deposits are finite and there are problems in mining sufficient amounts of it.
India's hard coal deposits are of low quality.

6. Insufficient freight capacity and transport infrastructure impediments to hamper

the growth of Indian steel industry.

3
TATA COMPANY’S PROFILE
2.1 Introduction

The TATA Group comprises 98 operating companies in seven business sectors:

information systems and communications; engineering; materials; services;

energy; consumer products; and chemicals. The Group was founded by

Jamshedji Tata in the mid 19th century, a period when India had just set out on

the road to gaining independence from British rule. Consequently, Jamshedji

TATA and those who followed him aligned business opportunities with the

objective of nation building. This approach remains enshrined in the Group's

ethos to this day.

The TATA Group is one of India's largest and most respected business

conglomerates, with revenues in 2007-08 of 131,535.88 crore, the equivalent of

about 3.8 per cent of the country's GDP, and a market capitalization of $77.5

billion as on August 13, 2008. TATA companies together employ some 289,500

people. The Group's 27 publicly listed enterprises — among them stand out

names such as TATA Steel, TATA Consultancy Services, TATA Motors and

TATA Tea — have a combined market capitalization that is the highest among

Indian business houses in the private sector, and a shareholder base of over 2.9

million. The TATA Group has operations in more than 85 countries across six

continents, and its companies export products and services to 80 countries.

4
The TATA family of companies shares a set of five core values: integrity,

understanding, excellence, unity and responsibility. These values, which have

been part of the Group's beliefs and convictions from its earliest days, continue to

guide and drive the business decisions of TATA companies.

5
2.2 LEGACY OF TATA GROUP

There is a difference between making money for oneself and creating wealth for
others. This is the story of a business house that has created wealth for a nation.
It is a story of struggle, anxiety, adventure and achievement. This is the story of
our pioneers.

Jamshedji Tata: The founder of the Tata Group began with a

textile mill in central India in the 1870s. His powerful vision
inspired the steel and power industries in the country, set the foundation for
technical education, and helped India leapfrog from backwardness to the ranks of
industrialised nations.

Sir Dorabji Tata: Through his endeavours in setting up Tata Steel and Tata
Power, this elder son of Jamshedji Tata was instrumental in transforming his
father's grand vision into reality. It was also under his leadership that the Sir
Dorabji Tata Trust, the premier charitable endowment of the Tata’s, was created,
propelling the Tata tradition of philanthropy.

6
Sir Ratan Tata: Jamshedji Tata's younger son had a personality that reflected
his sensitivity to the struggles of ordinary people and his desire to utilise his
considerable wealth to enhance the quality of public life.

A philanthropist all his life, he created a trust fund for "the advancement of
learning and for the relief of human suffering and other works of public utility".
The Sir Ratan Tata Trust is today the second largest of the Tata trusts.

JRD Tata: The late chairman of the Tata Group pioneered civil aviation on the
subcontinent in 1932 by launching the airline now known as Air India. That was
the first of many path-breaking achievements that JRD, who guided the destiny
of the Group for more than half a century, came to be remembered for.

7
Naval Tata: Naval Tata's myriad contributions in the fields of business, sports
administration and labour relations symbolized all that is best in the Tata spirit of
giving back to society and the communities in which its enterprises grow.

8
 2.3 PRODUCTS & SERVICES OFFERED BY TATA

Agricultural appliances (Tata Agrico)

Agrochemicals (Rallis)

Auto Accessories (Tata Auto Comp GY Batteries)

Books (Tata McGraw-Hill)

Cellular products and services (Tata Indicom)

Ceramics (Tata Ceramics)

Charter flights (Taj Air)

Coffee (Tata Coffee)

Cooling appliances (Voltas)

Credit card (Tata Sons)

Electronics (Infiniti Retail)

Entertainment (Tata Sky)

Fertilisers (Tata Chemicals)

Financial (investment: Tata Asset Management, Tata Capital, Tata

services
Investment Corporation)

Food products (food additives: Tata Chemicals; spices: Tata Tea, Tata Coffee)

Garments and home products (Westside)

Holiday homes (Tata Coffee)

Home appliances (Tata BP Solar)

Hotels (Indian Hotels)

Housing (THDC)

Insurance (Tata AIG Life, Tata AIG General)

9
Jewellery (Tanishq)

Leather products (Tata International)

Multi-utility vehicles (Tata Motors)

Passenger cars (Tata Motors)

Tea (Tata Tea, Tetley)

Telecommunications (Tata Indicom, VSNL)

Watches, clocks (Titan)

2.4 TATA STEEL

TATA Steel's products include hot and cold rolled coils and sheets, galvanized
sheets, tubes, wire rods, construction rebar’s, rings and bearings. In an attempt

10
to 'discommodities' steel, the company has introduced brands like Tata Steelium
(the world's first branded Cold Rolled Steel), Tata Shaktee (Galvanized
Corrugated Sheets), Tata Tiscon (re-bars), Tata Bearings, Tata Agrico (hand
tools and implements), Tata Wiron (galvanized wire products), Tata Pipes (pipes
for construction) and Tata Structura (contemporary construction material). The
company has launched the Customer Value Management initiative with the
objective of creating complete understanding of customer problems and finding
solutions jointly. The company's Retail Value Management addresses the needs
of distributors, retailers and end consumers. The company has also launched
India's first steel retail store - steeljunction - for making steel shopping a happy
and memorable experience.

2.5 POLICIES OF TATA STEEL:

Tata Steel, in accordance with its founding principles, will continue to improve the
quality of life of its employees and the communities it serves.Tata Steel will
conduct its business ever mindful of its social accountability, respecting
applicable laws and with regard for human dignity.

Tata Steel will positively impact and influence its partners in fostering a sense of
social commitment for their stakeholders.

2.5.1 Quality Policy:

Consistent with the group purpose, Tata Steel shall constantly strive to improve
the quality of life of the communities it serves through excellence in all facets of
its activities. TATA STEEL are committed to creating value for all our
stakeholders by continually improving our systems and processes through
innovation, involving all our employees.

11
This policy shall form the basis of establishing and reviewing the Quality
Objectives and shall be communicated across the organization. The policy will be
reviewed to align with business direction and to comply with all the requirements
of the Quality Management Standard.

2.5.2 Alcohol and Drugs Policy:

Tata Steel believes that the loyalty and commitment of its employees depend
upon the quality of life they are offered at work and at home.

TATA STEEL recognize that indiscriminate use of alcohol and drugs is injurious
to the well being of individuals, their families and the community as a whole.
TATA STEEL acknowledges that the misuse of these psychoactive substances is
a major health and safety hazard.

Tata Steel is therefore committed to creating an alcohol and drug-free

environment at the work place. This would be achieved through the involvement
of all employees and the Joint Departmental Councils in spearheading
appropriate initiatives. The initiatives would include:

1. Raising awareness, through the dissemination of information, education and

training and by promoting healthy life styles among our employees and their
families.

2. Motivating those employees who have an alcohol/drug problem, to seek

assistance, while maintaining confidentiality about such cases.

2.5.3 Human Resource Policy:

Tata Steel recognizes that its people are the primary source of its
competitiveness. It is committed to equal employment opportunities for attracting
the best available talent and ensuring a cosmopolitan workforce. It will pursue
management practices designed to enrich the quality of life of its employees,

12
develop their potential and maximize their productivity. It will aim at ensuring
transparency, fairness and equity in all its dealings with its employees.

Tata Steel will strive continuously to foster a climate of openness, mutual trust
and teamwork.

2.5.4 Corporate Social Responsibility Policy:

Tata Steel believes that the primary purpose of a business is to improve the
quality of life of people.

Tata Steel will volunteer its resources, to the extent it can reasonably afford, to
sustain and improve healthy and prosperous environment and to improve the
quality of life of the people of the areas in which it operates.

2.5.5 Environmental, Occupational Health & Safety Policy:

Tata Steel reaffirms its commitment to provide safe working place and clean
environment to its employees and other stakeholders as an integral part of its
business philosophy and values. We will continually enhance our Environmental,
Occupational Health & Safety (EHS) performance in our activities, products and
services through a structured EHS management framework. Towards this
commitment, we shall;

1. Establish and achieve EHS objectives and targets.

2. Ensure compliance with applicable EHS legislation and other requirement
and go beyond.
3. Conserve natural resources and energy by constantly seeking to reduce
consumption and promoting waste avoidance and recycling measures.
4. Eliminate, minimize and/or control adverse environmental impacts and
occupational health and safety risks by adopting appropriate "state-of-the-
art" technology and best EHS management practices at all levels sand
functions.

13
Enhance awareness, skill and competence of our employees and contractors so
as to enable them to demonstrate their involvement, responsibility and
accountability for sound EHS performance.

2.5.6 Research Policy:

Tata Steel believes that research provides the foundation for sustained, long-
term, stakeholder delight. Tata Steel shall nurture and encourage innovative
research in a creative ambience to ensure that the competitive advantage in its
overall business is retained and surpassed. Towards this goal, the Company
commits itself to providing all necessary resources and facilities for use by
motivated researchers of the highestcalibre.10 Research in Tata Steel shall be
aligned to the technological initiatives necessary to evolve and fulfil the overall
business objectives of the Company.

2.5.7 Social Accountability Policy:

Tata Steel, in accordance with its founding principles, will continue to improve the
quality of life of its employees and the communities it serves.Tata Steel will
conduct its business ever mindful of its social accountability, respecting
applicable laws and with regard for human dignity.Tata Steel will positively
impact and influence its partners in fostering a sense of social commitment for
their stakeholders.

2.5.8 Key Enterprise Processes:

 Leadership
 Strategic Planning & Risk Management
 Market Development
 Investment Management
 Human Resources
 Improvement & Change Management
 Order Generation

14
  Operation & Fulfillment
 Supply Management
 Research & Development
 Information Management
 Social Responsibility & Corporate Services

2.5.9 Values:

 Trusteeship
 Integrity
 Respect for the individual
 Credibility
 Excellence

2.6 DISTRIBUTION NETWORK OF TATA TISCON (TATA)

15
 TATA has its distribution network all over India. Marketing and sales
headquarters are divided in to four areas.
East region- This includes kolkata, Bhubaneswar, Jamshedpur, Patna and Siliguri.
West region- This includes Mumbai, Ahmdabad, Indore, Nagpur, and Pune.
North region- This includes New Delhi, Jaipur, Kanpur, Ludhiana, and Faridabad.
South region- This includes Banglore, Chennai, Vijaywada, and Secunderabad.

16
2.7 Company Profile of DTC

 Introduction

Delhi Trading Corporation. (D.T.C.) is a member of the Steel Group of

Companies based at Jaipur, the financial back-bone of north India. DTC is the
Authorized Distributor of TATA STEEL for TATA TISCON Re-bars, on an
exclusive basis for Northern Region. This professionally managed company has
built up the Retail Channel across in Rajasthan by appointing authorized
Retailers/Dealers under its banner.

The company has been awarded for its Quality Management System. By
rendering unequalled quality service to its customers and continual improvement
as its management mantra, DTC is growing phenomenally every year.

The Company has got its yard at VKI AREA,JAIPUR with its digitized weigh-
bridge and enormous storage area where the materials are stored scientifically
for proper distribution. The organization is only developing further in the pursuit of
deployment of global best practices.

 MILESTONE

• Company was established in 1984 under the banner of DTC

group of industries.

• In 2000 had a conglomerate diversification in steel industry

as authorised distributor of TATA TISCON debars for the state of

RAJASTHAN.

• In 2002 got the distribution right of TATA TISCON rebar’s for the

Rajasthan state, in North region.

17
 • In 2003 got the distribution rights for the entire Rajasthan

region.

• In 2006 got special award from TATA for maintaining good

relations with retailers and subsequently expanding business

opportunities.

• Retail sales during 2007-08 are 32158 MT worth Rs.10.57

crore. Project sales during 2007-08 are 9367 MT worth Rs 3.18

crore. Total sales from both the segments are 41525 MT worth Rs

13.75 crore.

• In 2008 D.T.C. got a special award from TATA for increasing

sales during the period 2007-08.

 DISTRIBUTION NETWORK OF D.T.C

18
Currently D.T.C. is operating in Rajasthan states of Northern region. It has appointed
retail dealers in every district of the Rajasthan and continuously giving in efforts to
increase market share as trying to form a relation with its dealer and retailers so that
it can achieve all the target of social accountability.

 ORGANISATION CHART OF TATA STEEL LIMITED.

19
 MANAGING

DIRECTOR

MANAGER
VICE
PLANNING &
CHAIRMAN
CHAIRMAN DEVELOPEME
NT

FINANCE AND
COMM.
MANAGER

Fig. organisation chart of TATA STEEL LIMITED

The organisation structure of TATA STEEL LIMITED includes three levels. In the
top management there is a Managing Director. He controls and commands the
whole organisation. After that line of authority is divided in to three parts. (1).
Chairman. (2) Vice Chairman. (3) Manager-planning and development.In the
middle level management there are Finance and comm. Managers and
departmental heads of all the regions. They are responsible to top level

20
management. In the lower level management there are Customer Accounts
Manager and Supervisors.

21
  EXCELLENCE

TATA STEEL’s excellence may described by the company code of conduct. The
main points are (1) Ruthless cost cutting of wasteful expenditure, (2) Always
ready for the change, (3) Strive relentlessly to build relationships and influence
consumption.

22
CHAPTER 3. RESEARCH METHODOLOGY

3.1 TITLE OF THE STUDY

“Physical Channel Management of TATA STEEL LTD.”

A project study report on the “Physical Channel Management of TATA STEEL
LIMITED” to find out the physical distribution channel.Channel management is
said to be the backbone of any business and is one of the important factor
behind the successful story of any business.
This project will give knowledge about the Indian steel industry (REBAR).It will
help to know about growing steel industry in India and about the adaptation of
channel distribution as per the need organization.

23
3.2 DURATION OF THE PROJECT
The duration of the project was 45 days.

3.3 OBJECTIVE OF STUDY

The objective of the study was to find out the efficiency of the channel of
distribution of TATA STEEL LIMITED. here it was taken care of how the
organization is maintaining its physical channel and improvement could be done
so both the three concerns are benefited.
1. D.T.C. (DISTRIBUTOR).
2. DEALER
3. END CUSTOMER.

To meet out this objective a sample was taken of the dealers and a questionnaire
was supplied to them and their response was soughed. In the research every
minute detail were considered so that the objective Of the research are achieved.

Main objectives of the study are as follows-

 To find out the efficiency of the channel of distribution of TATA STEEL
LIMITED.
 To study the Indian steel industry during the global economic recession.
 To study TATA STEEL’s extensive distributor/dealer network.
 To get awareness about the physical channel management of TATA
STEEL LIMITED.
 To study the effect of price fluctuation on the dealers of TATA STEEL
LIMITED.
 To find out limitations of the channel management.
 To know whether the dealers are satisfied with the company or not.
 To find out whether unorganised market influences the price of the
product.

24
3.4 TYPE OF RESEARCH
The research type employed in this research was exploratory as to know about
the review of the dealers. A survey was to conducted in the market to find out
the review of the dealers so that the efficiency and effectiveness of the physical
distribution channel can be analyzed and measures could be suggested. In
exploratory method of research it is easy to found out the real cause behind
any thing. Exploratory method is better than the descriptive as here elaboration
of a subject is done after analyzing the real market condition. Here primary
data was collected through personal visit to the market and giving a
questionnaire to the concerned people.

3.5 SAMPLE SIZE AND METHOD OF SELECTING SAMPLE

DATA COLLECTION.

I have used the following data collection methods during my research study:

 PRIMARY DATA.
 SECONDARY DATA.

PRIMARY DATA: Survey and questionnaire .

SECONDARY DATA: Secondary data is taken from manuals, books, journals and
internet.

The sample considered for this purpose was selected from the city of JAIPUR.
As DELHI TRADING CORPORATION (DISTRIBUTOR) is operating in Rajasthan
states and as it was not possible to meet each and every dealer within the
stipulated time.

25
The city of Jaipur was selected because of the following reasons.
1. This city is the capital of Rajasthan.
2. The market of Rajasthan has got all the condition of a perfect market.
3. Jaipur is a big city and relatively it has got more no. of dealer then the
other cities.
4. The dealers of this city are easy to reach as they are within a close
proximity.

26
The names of the dealer contacted for this purpose are given below.
1. ADITYA METACAST PVT LTD.JAIPUR
2. ANIL BUILDING MAT.JAIPUR
3. BALLU STEELS.AJMER
4. DELHI STEEL SYNDICATE.JODHPUR.
5. KRISHNA CEMENT AGENCIES.SANCHOR.
6. KUMAWAT TRADING CO.KOTPUTLI.
7. MAHADEV IRON STORE.BIKANER
8. MOHIT STEELS.,JAIPUR
9. MUFFDAL HARDWARE STORE.BANSWARA
10. PAWAN TRADING CO..HINDON.
11. PUKHRAJ RAM NARAYAN & CO.SUMERPUR
12. RAJASTHAN ENTERPRISES.BANSWARA.
13. RAMESHWAR LAL MALI, BIKANER,
14. SANGHI STEEL., JAIPUR
15. SUNRISE STEELS., JAIPUR
16. SURESH AGENCIES, JAIPUR
17. DELHI STEEL., KOTA

27
3.6 Scope of study
This study will be helpful to find out the review of the dealers so that the

efficiency and effectiveness of the physical distribution channel can be

analyzed and measures could be suggested.

3.7 Limitations of the study

This project includes following limitations:-

 It was difficult to study the Indian steel industry during the global
economic recession.
 The area of Indian steel Industry is large enough to study.
 It was difficult to get all the necessary information regarding the project.
 It was difficult to study unorganised market.
 Time constraint is the biggest constraint in taking up the study.

28
Chapter 4. FACTS AND FINDINGS

4.1 PRODUCTS:
A little something to build your dream. And make it last. Throughout
the long years of its existence, Tata Steel has attempted to touch
the lives of millions of Indians. It has attempted not just to create
steel, but to create opportunities. To build not just plants, but lives.
If Tata Steel has improved the social fabric of the land, suffice it to
say that, that was expected of us by you. For we ardently believe
that what comes from the people must go back to the people. Which
is why, we are, indeed delighted to present to you.

The difference between TATA TISCON and any other Rebar in the market:-
TATA TISCON is the only Rebar in the market today that provides consistent
mechanical and chemical properties Rebar after Rebar. This is because TATA
TISCON is manufactured from virgin steel (made from TATA STEELS own
mines) and rolled with superior technology and strict discipline strong quality
control ensures that each rebars reflects the trust and quality that the TATA
name commands.

29
Product Superiority

Higher and uniform

High Ductility No cold twisting
strength
Elongation 18- No residual Yeild strength 450
25% stress N/mm 2 (min)*
Uniform properties all
through due to TMT
process.

*(Typical values for 90% of cases) 

1. Chemical Composition

TATA TISCON bars are produced in Fe 415 IS: 1786 grade. However,
carbon levels are restricted to much lower than the specification, which
results in excellent ductibility, high bendability and superior weld
ability.

Chemistry Unit IS : 1786 TATA TISCON

Fe 415
Carbon % 0.30**max 0.17-0.24
Carbon % 0.38max
equivalent
(C+Mn/6)
Sulphur % 0.060max 0.050max
Phosphorous % 0.060max 0.045
S&P % 0.110max 0.090max
Nitrogen ppm - 100max
*(Typical Values for 90% of heats)
**(In case of weldable bars the carbon content

30
 should be 0.25% max)

2.Mechanical Properties.

Because of their unique method of manufacture, TATA TISCON

Bars possess a combination of strength and ductility that is far in
excess of the minimum limits specified in the standard is: 1786 in case
of yield strength for TATA TISCON, though the standard specifies 415
N/mm2 and designers use this value for design, the typical values are
as high as 450 N/mm 2 . For the same product, the typical value of
ductility as measured by elongation is 18%minimum as against
Because of their unique method of manufacture, TATA TISCON bars
possess a cothe standard value of 14.5% minimum. Undoubtedly, this
ductility is a guarantee of higher levels of safety.

Mech. Un IS : 1786 TATA TISCON*

Properties it Fe 415
Yeild Stress N/ 415 min 450 min
m
m
Tensile N/ 10% over YS 520 min
Stress m
m2
Elongation % 14.5 min 18 min
Mi
n
*(Typical Values for 90% of heats)

 Bond Strength:
The rib pattern of TATA TISCON bars has been specially designed to ensure that
excellent bond strength exists between the bar and the surrounding concrete.

31
The ribs are cut by automated milling machines which produce uniform and
concrete ribs. While the specification stipulates that bond strength should be 40%
higher than that of Mild Steel plain bars, TATA TISCON has values, which are
100-200% higher than those of Mild Steel Bars.

 Bending:
The tough outer surface and core of TATA TISCON results in a rebar with
excellent values of bend ability. The bar can be bent around mandrels much
smaller than those specified in IS 1786. This has obvious advantages at
construction sites.

 Weld ability:
TATA TISCON due to its low carbon equivalent has a weld ability which is
superior to conventional cold twisted bars. It can be butt-welded or lap-welded
using ordinary rutile coated electrodes of matching strength. In manual arc
welding no prewarming or post heat treatment is necessary.

 Corrosion Resistant Characteristics:

TATA TISCON is produced by thermo-mechanical treatment and not by cold
twisting. Therefore, there are no torsion residual stresses in the bar, which result
in superior corrosion resistance characteristics compared to traditional cold
twisted bars.

 Dimensional Tolerances:
TATA TISCON is supplied with section weight lower than the nominal, is
guaranteed for not more than the nominal, and is guaranteed for not more than
1% heavy.

 Seismic Resistance Properties:

32
Studies were conducted on concrete beam column joints reinforced with TATA
TISCON to evaluate its performance under repeated reversed loading with
inelastic strains as would be encountered during an earthquake. The energy
dissipation was found to be almost same for each cycle; indication uniformly
maintained ductility till failure. The tests revealed superior seismic resistance
properties for TATA TISCON.

TATA TISCON strength and ductility exceeds the minimum level specified by IS:
1786 standards. While normal yield strength specifies 415N/ mm 2 TATA TISCON
has yield strength of 450/mm 2 which ensures stronger homes.

33
 FLOW CHART OF PRODUCT PROPERTIES

34
Product Range
TATA TISCON bars are available in the following size range: 8,
10, 12, 16, 20, 22, 25, 28, 32, 36, & 40 mm
Standard Size and useful data

Section (mm) Nominal weight Nominal length

(kg/meter) (Mts/MT approx)
8 0.395 2531
10 0.617 1620
12 0.888 1126
16 1.58 633
20 2.47 405
25 3.85 260
28 4.83 207
32 6.31 159
36 7.99 125
40 9.85 102

35
MARKET SHARE

The market of the rebar’s is primarily divided into following segments in India.
1. Individual house building.
2. Construction in real estate.
3. Government construction.
4. Mega infrastructure.

The market of rebar’s in Rajasthan states is primarily comprises of 2 segment.

1. Organized segment.
2. Unorganized segment.

The following players are present in the market and they can be divided on the
basis of above division.

1. ORGANISED SEGMENT:
a) STEEL AUTHORITY OF INDIA (SAIL).
b) RASHTRIYA ISPAT NIGAM LTD.(RINL)
c) TATA TISCON
d) KHAMDHENU TMT

2.UNORGANISED SEGMENT:
a) BISCON TMT
b) SAI TMT
c) ELLEGANT TMT
d) BHAGWATI TMT
e) AADHUNIK TMT
f) SHYAM STEEL

36
The market is divided between these two segments in the ratio of

30%

70%

30% ORGANISED SEGMENT

70% UNORGANISED SEGMENT

The market of Rajasthan is divided in both segments and TATA TISCON has a
market share of 30% in the organised segment. Since the last few years there
has been a significant increase in its market share .Today it has a good list of
clientele from all the 4 segments.

D.T.C. has put on all its effort to build a good market for TATA TISCON rebar
and it is continuously helping TATA to maintain a good channel of distribution. It
has trained its retailers so that they could aware common people of the benefits
of using high quality rebars.

37
Acquisition of CORUS

There is no doubt that Tata has pulled off a coup — Corus makes nearly four
times more steel than Tata Steel. The deal was cleared on 31st January 2008.
Together; the combine becomes the fifth largest producer in the world and the
second in Europe. But to make the most of the deal, Tata has to manage several
variables including steel prices, raw material supplies and interest costs on the
$8-billion debt that is being raised to fund the deal.

Soon he may also have to deal with the sensitive issue of possible job cuts in
Corus’s manufacturing plants. There are also the usual set of integration

38
challenges that come with such large buyouts. The deal may be done, but the
hard work is just beginning.

Despite the thumbs-down from the markets, the TATA Group is convinced of the
long-term synergies in manufacturing, access to global customers, opening India
to CORUS or leveraging research and development for TATA Steel’s projects.

39
Chapter 5. ANALYSIS AND INTERPRETATION

TATA and D.T.C. has good business prospects in the RAJASTHAN REGION.
The quality of the management and the efficient and dedicated employees and
channel partner.

Analysis from the area of research are given below by considering the questions
one by one as follows.

1. Whether the dealer is an exclusive?

Here as an answer most of the dealer were found to be in a proportion.

0%
20%

80%

80 % Dealers exclusive TATA TISCON DEALER

40
20 % Non exclusive

Here it was found that 80% of the dealers were exclusive tata tiscon dealer and
they are proud to be associated with this brand, due to various factor such
quality, brand name, international standard followed by company etc.

2. Is profit margin better then other companies (both from organized and
unorganized)?
In this regard a mix response was found.

0%

35%

65%

65% DEALERS AGREED

35 % DEALERS NOT AGREED

Here 65% of dealers agreed that they are receiving a better percentage then the
other companies are giving to its dealer.

41
Rests of the 35% were not agreed with the former one due to some unknown
reason.
3. Positive aspect according to them?
Research conducted in this regard bring forth following findings
 QUALITY
 BRAND NAME
 SAME PRICE ALL OVER INDIA
 INTERNATIONAL STANDARD

95%
1

65% 85%
4 3

70%
2

Here it was found that the entire dealer’s reviews were divided in following
distribution. The findings are represented in the form of Venn diagram according
to their choice. Weight age is given according to their answers.

42
4. Negative aspect according to them

Here the dealers were unanimous in following sections. One half thought that it is
1. PRICE FLUCTUATION
2. MONOPOLISTIC RESTRICTION
3. NO CREDIT FACILITY
4. HIGHER PRICE

PRICE FLUCTUATION: TATA uses to fluctuate its price in every 3-6 month which
is earlier then its competitors.

MONOPOLISTIC RESTRICTION: TATA imposes restriction such as dealers are

not allowed to take big project order, imposing new system of reporting daily sales
through e-mail.

NO CREDIT FACILITY: no credit facility is provided.

HIGHER PRICE: TATA has got a higher price for each kilo of iron (difference is 4-
5 Rs. a kilogram).

5. Additional benefit given by D.T.C.

The dealers here sighted the following benefits that are vested to them by their
distributor.

 SALES ASSISTANCE: D.T.C. provide sales assistance to new dealers,

they send their sales executive to the individual house builder address if the dealer
ask them to do so.

43
 TRAINING: D.T.C. provides training to the dealers in 1 week programme
every year, and special training on the launch of new product.

 ADVERTISING AND SALES PROMOTION SUPPORT: time to time

advertisement and sales support are provided, advertisement material such as
banner, poster, pamphlets, glow sign etc.
 EFFECTIVE SERVICING: fast and spontaneous reply is made on receiving
any query from dealer.
 REGULAR, ADEQUATE AND PROMPT SUPPLY OF THE PRODUCT:
fast prompt supply is done on receiving order. Delivery is made within 24 hours.
 EFFECTIVE COMMUNICATION: effective and timely communication is the
backbone of a good channel management. DTC. has provided all its dealer with
important call no. of its executive. Other then this TATA has provided with an all
India basis toll free no. to its dealers.

44
6. End customer review about product?

THE dealers contacted for the purpose of research quoted that the end customer
are satisfied to 85% irrespective of the higher price they are paying for the product
because they regard quality as the prime factor in their purchasing decision. Some
of the other factor for which customer prefer to buy TATA REBARS are free home
delivery, fair weigh, international design of rebar, corrosion resistant property,
higher ductility, higher weld ability etc.

15%

85%

85 % SATISFIED CUSTOMER
15 % NOT SATISFIED

The blue part denotes the satisfied dealer.

45
The red part denotes the unsatisfied dealer.

7. Restriction of any kind imposed by distributor or company?

The dealers have sighted policies of both the TATA Company & their
distributor D.T.C. which they considered to be as restriction on them some
of the following are

 Restriction of sending day to day sales report for that most of the dealers
have to purchase new computer and have to bear extra expense of
internet.

 Have to purchase electronic weighing machine which after a year was of

no use to, as TATA has introduced single piece selling system now.

 Have restricted them not to handle big project and they can deal with
individual house builder only which have less margin then the former one.

 Have to complete the target on month basis if not achieved for 2-3 month
they may loose their dealership.

46
 8. Discount given to them?

On asking this question all the dealers were unanimous on the point that no
discount is given to them.

0%

100%

No discount, 100% of the dealer gave the same review.

47
9. Whether dealers are satisfied? YES/NO

In regard of this question it was found that about 75% of the dealers were found
to be satisfied with the distribution channel and management of both the
companies i.e. TATA & DTC.

0%
25%

75%

75 % SATISFIED
25 % NOT SATISFIED
The red part denotes the unsatisfied dealer.
The blue part denotes the satisfied dealer.

48
Chapter 6. SWOT ANALYSIS

SWOT ANALYSIS means analysis of strength, weakness, opportunities and

threat of a person or of an organization. Today in this competitive world full of
uncertainties and problems, an organization has to face so it has to prepare itself
for any kind of situation so organization do SWOT analysis on regular interval so
that they could access their strength, weakness and could analyse its situation
and can be prepared for any kind of situation.

By doing the SWOT analysis of TATA STEEL LIMITED following details were
found –

6.1 STRENGTH: brand name, quality, effective physical distribution, honesty

in weighing, free home delivery. Unique single piece selling, same price all over
India.

6.2 WEAKNESS: price fluctuation higher price.

6.3 OPPORTUNITY: fast developing real estate business, launch of new

super ductile product.

6.4 THREATS: basically no threats have seen but unorganized segment if not
controlled then it can be a potential threat in near future.

49
 Unique single rod selling: In this concept, TATA has introduced a new
strategy of selling single piece as compared to the selling by weight.

 Free home delivery: TATA has introduced free home delivery for the
I.H.B. segment.

 Price fluctuation: weakness observed was that TATA changes its price
every 6 months which when compared with others players is fast by 6
months.

 New super ductile product: recent launch of new super ductile product
has prove to be an opportunity for the company as it is much superior
quality then the existing product offered by the competitors.

50
Fig. SWOT analysis.

51
Chapter 7. Conclusion

As it can be concluded from data interpretation and analysis that TATA STEEL
LIMITED has got a good future in steel industry because today it is maintaining
an effective channel distribution and management. Channel management is said
to be the backbone of any business and is one of the important factor behind the
successful story of any business. In Indian market where no. of intermediaries
are more here to be successful coordination should be there.

 TATA STEEL LIMITED is maintaining an effective channel distribution and

management.
 TATA has got a good future in steel industry.
 80% of the dealers were exclusive TATA TISCON dealer and they are
proud to be associated with this brand, due to various factor such quality,
brand name, international standard followed by company etc.
 Profit margin is not greater then other companies (both from organized
and unorganized).
 Negative aspect according to the dealers were price fluctuation,
monopolistic restriction, no credit facility, higher price.
 Company has made some restrictions on the dealers.
 THE dealers contacted for the purpose of research quoted that the end
customer are satisfied to 85% irrespective of the higher price they are
paying for the product because they regard quality as the prime factor in
their purchasing decision. Some of the other factor for which customer

52
 prefer to buy TATA REBARS are free home delivery, fair weigh,
international design of rebar, corrosion resistant property, higher ductility,
higher weld ability etc.
 No discount is given to the dealers. It may be the reason of dissatisfaction
of some dealers.
 It was found that about 75% of the dealers were found to be satisfied with
the distribution channel and management of both the companies i.e. TATA
& DTC.
 Effective and timely communication is the backbone of a good channel
management. TATA and D.T.C. are having effective communication with
dealers and customers.
 The end customer are satisfied to 85% .

“In India it is believed that doing business is building relation”, so to be

successful in Indian market you have to maintain a good relation with the
intermediaries and end consumer, and TATA is maintaining it very effectively.
The punch line of TATA is clearly depicting it clearly “ATOOT JOOD” both in term
of quality and relation with customer and intermediaries.

53
Chapter 8. Recommendation and suggestions

Through the analysis of the data collected and through market study following
recommendations are suggested:

1. Should try to convince dealer’s with less capital to be exclusive by

making them agree on the point that future scope of TATA in steel
sector is bright and better quality and brand name is going to the most
preferable point in the eye of customer.

2. TATA should try to give more margins to its dealer so that better hold of
the market.

3. Positive aspect according to the dealer should be maintained and other

strong advantage should be looked for such as price, higher rate of
production.

4. Price fluctuation should be stopped and if not then its should be avoided
for as long as possible, if fluctuation is done it should be done after
competitor has revised their rates.

5. No new scheme and policy should be forcibly implemented if a policy is

to be made then it should be taken care of that the interest of the small
dealer should not be hampered.

6. Credit facility should be given so that market share could be increased,

as in Indian market credit given and taken is the essence of Indian
market.

7. Price rate should be brought down as other players are having

advantage of low price.

8. The types of benefit given by D.T.C. are very good and they are
appraised by dealer.

54
9. Customer review is found to be satisfactory and it should be maintained
in future.

10. Company should try to give discount in off season (monsoon).

11. Dealer satisfaction is found to be satisfactory, and should be maintained

in future.

12. Start advertisement campaign again on television, radio and Internet

also. Do intensive marketing for business opportunity and products both.
13. Build trust upon customers through services.

14. Provide part time training.

15. Do some social activities through which company could get benefit of
marketing indirectly.

55
 Questionnaire.
1. Whether the dealer is an exclusive? YES/NO

2. Is profit margin better then other companies

(Both from organized and unorganized)? YES/NO

3. Is there any Additional benefit given by D.T.C.? YES/NO

4. Whether dealers are satisfied with company? YES/NO

5. Is there any restriction imposed by distributor YES/NO

Or company?

6. Is Discount given to them? YES/NO

7. Satisfaction of customer, YES/NO

8. Is there any credit facility by company? YES/NO

9. Is there any price fluctuation in the market? YES/NO

10. Does price differ from area to area? YES/NO

11. Prompt supply of the product. YES/NO

12. Does company provides any traning for launching YES/NO

Of a new product?

13. Free home delivery by the company. YES/NO

56
BIBLOGRAPHY

I have consulted many sources of information to furnish my project report. I have

tried my best to put comprehensive matter regarding all those things come under
my project area. I have gone through several sources of information. These are
as follows-

WEB SITES

www.tatasteel.com
www.economywatch.com
www.steelonthenet.com
www.excelbooks.com

Books

MARKETING MANAGEMENT
STRATEGIC MANAGEMENT
SUPPLY MANAGEMENT

Search Engines

www.google.com

www.yahoo.com

www.altavista.com

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