Steel growth in Odisha and its impact on refractory market at present and in future in OCL

Steel growth in Odisha and its impact on refractory market at present and in future in OCL, refractory division

Supervision By: Prof. Anup kumar ghosh Faculty of management Disha school of management

Submitted by: Prasanjeet Poddar 1008003 PGDM IV Trimester

Road map
Objective Company profile Research methodology and data collection. At present steel production and no of units. Upcoming steel projects and its capacity Types of ref. used in steel production Specific consumption of ref. per ton of steel production Ref. required for steel production Market share of OCL OCL strategy for tackling competition SWOT analysis Findings and analysis observation Suggestion for improvement in market share conclusion

Objective
To determine the growth of steel in near future. To identify the scope of refractory division of OCL to meet the demand of growing steel industry in Odisha. To mark out the market share of OCL of refractory division. To know the future marketing strategies to tackle the competition. Understanding the work culture and marketing aspects at OCL.

Company profile
1. OCL INDIA LIMITED, formerly "Orissa Cement Limited" and better known as "OCL" started producing refractories in 1954. 2. Over the years, it has become one of the largest and well-equipped state of the art Refractory plants in India covering a wide range of products for use in the Ferrous & the non-ferrous Industries. 3. Its customer base spreads from iron and steel to cement, aluminum, glass, copper, chemicals and hydrocarbon industries. 4. Today, OCL enjoys a huge market share in India and overseas extending to five continents across the globe. 5. Besides, it has also promoted an independent R&D Centre - DALMIA INSTITUTE OF SCIENTIFIC & INDUSTRIAL RESEARCH.

Research methodology and data collection.

1. Primary data collectionA. Personal meeting with marketing executives. B. Personal meeting and talk with executives of other refractory manufacturer. 2. Secondary data collection: A. organizational files B. websites C. records D. official journals

At present steel production and no of units.

No of units: Integrated steel plant 1 Pig iron manufacturer 3 Total number of sponge units 108 Capacity of production: Sponge iron 10.032 MTPA Through induction furnace 1.49 MTPA Steel from BF/MBF 4 MTPA Total steel production of Odisha is 8.82 MTPA which is 14% of India's steel production i.e. 63 MTPA

Upcoming steel units

14 new steel plants by 2020 in Odisha. Capacity will move to 45 MTPA from 8.82 MTPA. Total steel production will move to 100 MTPA in India. 45% production of steel accounts from Odisha alone. Very good opportunity for OCL refractory division to target major steel units.

Specific consumption of ref. per ton of steel production

12 kg to 15 kg approx. of refractory required for per tonne of steel production through BF/MBF route. 5.6 kg to 6 kg approx. of refractory required for per tonne of sponge iron production through DRI route. 33.1 kg approx. of refractory required for per tonne of steel production through induction furnace route.

Types of ref. used in steel production

Silica ref. Basic ref. Fire clay ref. Slide gate ref. Black ref. or tundish Purging ref. Lance

Refractory required for steel production in Odisha

For 10.032 MTPA of sponge iron production, 56179.2 TPA to 60192 TPA refractory required. 49,319 TPA of refractories are required for 1.49 MTPA of steel production through induction furnace route. 48,000 TPA to 60,000 TPA of refractory are required for 4 MTPA steel productions through primary route.

Sales in tonnage in sponge units

Sales in tonnage in BF/MBF units

Market share of OCL

In sponge units:2008-2009 3.3132 % approx. 2009-2010 1.6804 % approx. 2010-2011 0.1289% approx. In BF/MBF units:2008-2009 6.9759 % approx. 2009-2010 26.5424 % approx. 2010-2011 11.1168% approx.

OCL strategy to tackle competition

 Guarantee given to customer regarding products.  More seminars and workshop should be entertained.  Target big customers who look for good quality.  Turnkey project.  Particular group for marketing survey and piece data.  To bring new technology and better life to product.  Focused and tie up with big customers.  Brick refractory manufacturing shifted to china near to sources of raw material for timely delivery and improving quality of product.  Complains are need to be looked and solved effectively.  Low price as compared to other players.

SWOT analysis
Strength: Quality, variety, R/D, tie up Weakness: high price, poor delivery, not fully modernized, market dependable

Opportunity: Threat: International market, growth in steel competition, local players, come Industry, demand of quality product up of Chinese companies

Findings and analysis

SWOT analysis Market share of OCL Future strategies by top marketing managers to tackle competition Positive effect from big steel manufacturer and they target them for big orders

Observations
1. Market share declining in sponge units. 2. Market share rising in BF/MBF units. 3. Local players are feeding market in specialized product like IFGL in bricks, ACC in castable, TRL in slide plates etc. 4. OCL is slow in adapting new technology. 5. No separate departments for particular task.

Suggestion for improvement in market share

Need to be more focused in refractory division rather than cement unit. Brand image need to be build up by implementing those marketing strategies. Price issue needs to be focused or else it may lead to stay far behind than others. Rejection needs to be controlled. Provide better quality product for satisfying customer. Set of marketing people should be there who needs to focus only creating marketing environment in market rather than putting time in other stuffs. Top management visit should be there to customer arena and to build good public relation.

conclusion
1. Customers are the beginning and end all business pursuits. Total satisfaction of customer s requirement in all aspects is therefore the key to success of any business organization. Hence OCL now aims at devoting it energies towards producing quality and creating value for customers. 2. OCL is taking a lot of steps in marketing of refractory. New players were entered into the ref. market. Each player would want to gain in terms of market share. As a forward step, a lot of innovations of products have been made to occupy an important market share. OCL now gives emphasis on making market oriented and customer oriented strategies.