AKASH KUMAR

DM21E01
AVIRAL JAIN
DM21E03
PRASHANT CHOUDHARY DM21E10
SAJAN VERMA
DM21E13

JINDAL
STEEL &
POWER
TABLE OF
CONTENTS
• History of the Company - Milestones

• Vision, mission, goals and objectives

• Marketing Environment Scanning (PESTEL Analysis – Macro)

• Industry Analysis – Application of M. Porters’ five force model

• Internal Analysis

• Marketing Strategy – Segmentation, Targeting and Positioning (STP) of Business Markets

• Marketing Mix of the Company

• Marketing to Government Markets

• Opportunities and challenges for the organization

• Observations, Findings, Suggestion and Conclusion

 History of the Company - Milestones

Jindal Steel and Power Ltd was incorporated in the year 1979. In the year 1995
the company forayed into power sector and started a company namely Jindal
Power Ltd to engage the power sector. In May 1998 the Steel Melting Shop of
the company was shut down due to the explosion.

JSPL has recently been rated as the second highest value creator in the
world by Boston Consulting Group; 11th fastest growing company in India
by Business World; included in one of the Fab 50 Companies by Forbes
Asia, 2009 and 2010; one of the Best Blue Chip companies as well as the
Highest Wealth Creator by the Dalal Street Journal. It has also been ranked
fourth as per Total Income in the Iron and Steel sector by Dun & Bradstreet.
Vision, mission, goals and objectives and of the organization

vision & Value Strategic Objective

We are a winning team driven by the desire to be At JSPL, we are poised to create superior value
a preferred world class supplier of Iron & Steel for the stakeholders by meeting our customers'
material and in doing so contribute to the nation’s needs, maximising free cash flows from our
infrastructure development. Our company’s core world-class assets, and allocating capital with
value is to establish and maintain quality systems
discipline. We are working towards building the
and procedures in all our operations and
furnace of India's growth.
businesses by focusing on the following.
• Team Work
• Accountability
• Continuous improvements
• Customer satisfaction
• On-time delivery
• Trustworthiness
 PESTEL Analysis
Political Factors Economic Factors Social Factors
-Government resource allocation and time scale – - Inflation rate – The easy liquidity in the market post the - Attitude towards health and safety – With
The India new government policies can improve great recession of 2018 will lead to increasing inflation in increasing liberalization the attitude towards health
the investment sentiment in the Basic Materials the India economy. and safety are getting lax.
sector. -Economic Cycles – The performance of Jindal
- Importance of local governments in India – - Societal norms and hierarchy – the society of India
Steel&Power in India is closely correlated to the economic
Unlike in most other countries, local governments is different from the home market of Jindal
performance of the India's economy.
play critical role in policy making and regulations Steel&Power
in India.

Social Factors Technological Factors Environmental Factors

- Legal protection of intellectual property, patents,
- Technology transfer and licensing issues - Paris Climate Agreement has put real
copyrights, and other IPR rights in India. How Jindal
for Jindal Steel&Power – In the Basic targets for the national government of India
Steel&Power will be impacted if there are not
Materials sector there is no strong culture of to adhere to.
enough protection.
technology transfer and companies often are - Customer activism – Greater awareness
- Environment Laws and guides – The level of
reluctant to transfer or license technologies among customers have also put
environmental laws in the India and what Jindal
for the fear of creating competitors out of environmental factors at the center of Jindal
Steel&Power needs to do to meet those laws and
collaborators. Steel&Power strategy.
regulations.
 Application of M. Porters’ five force model

1. Bargaining power of buyers of Jindal 2. Threat of new entrants in Iron & 3. Threat of substitute products and
Steel&Power and Basic Materials sector Steel industry – if there is strong services in Iron & Steel sector – If the
– If the buyers have strong bargaining threat of new entrants in the Iron & threat of substitute is high then Jindal
power then they usually tend to drive Steel industry then current players Steel&Power has to either
price down thus limiting the potential of will be willing to earn lower profits to continuously invest into R&D or it
the Jindal Steel&Power to earn reduce the threats from new players risks losing out to disruptors in the
sustainable profits industry.

4. Rivalry among existing 5. Bargaining power of suppliers in Iron &

players in Iron & Steel industry Steel – If suppliers have strong bargaining
– If competition is intense then power then they will extract higher price
it becomes difficult for existing from the Jindal Steel&Power. It will impact
players such as Jindal the potential of Jindal Steel&Power to
Steel&Power to earn maintain above average profits in Iron &
sustainable profits. Steel industry.
 Internal Analysis
Jindal Steel and Power Jindal Steel and Power
Strengths Weaknesses
1. Produces economical and efficient steel 1. Shortage of coking coal and is largely
and power through backward and forward dependent upon its import
integration 2. Weak performance on the back of the
2. Sports a product portfolio that caters to higher raw material cost and the power &
varied needs in the steel market fuel cost

Jindal Steel and Power Jindal Steel and Power

Opportunities Threats
1. Venture into new businesses by 1. Hike in the export duty on iron ore fines
leveraging its core capabilities and lumps
2. Increase production capacity to meet the 2. Project implementation and raw material
global steel demand security
Segmentation, Targeting and Positioning (STP) of
Business Markets
Product in the Marketing Mix Of Jindal Steels
Discrete Plates
Width 1500 mm - 4900 mm (trimmed edge ) , 1500- 5000 ( Mill Edge)

Thickness 5 mm - 150 mm (* > 150 mm can be discussed for particular grade and specifications)

Maximum length : 24 meter

Maximum coil weight : 25 MT

Maximum plate weight : 30 Tons

Hot Rolled Coils

Width - 1500 mm to 2500 mm

Thickness 5mm – 25 mm

Maximum coil weight : 25 MT

Cut To Length Plates

Width 1500 mm - 2500 mm

Thickness 8 mm – 25 mm

Length 6000 mm – 12500 mm

Wide Dimensional Range
Plate Thickness from Sen to 110mm, Width 000-5000m&Length 3000-24000mm.

Quality Assurance
From the aw material to the final product delivered to the customers, JSPL assures consistent
quality at every step strong quality assurance and control systems are equipped with state-of-the-
art modern testing facilities and condom to stringent quality standards. Ultra clean steel owing to
in house in ore, coal mines, better grain orientation and strength structural integrity for plates &
sheets an account of cross rolling.

Wide Application
High and special steel grade plates such as High Strength Low Alloy HSLA) Boilers & Pressure Vessel
and AP, are used in all structures, Boilers, Line Pipes, Automobiles, Ship Building Wind M, Yellow
Goods, Wagon Manufacturing, Defense & other Engineering applications.
Compliance with Standards/ Customer Requirement

With Strict adherence to various national and international standards/specifications like EN,
DNV BS, ASTM, APIJS, URS, ABS, IS etc; JSPL Plate Mill is capable of producing value added plate
products to meet critical and the latest industry requirements.
Portfolio analysis
Online ultrasonic testing machine
X-Ray Fluorescence & X-Ray Diffraction analyzer
LECO analyzers for Carbon / Sulphur, Oxygen/Nitrogen
Robotic Universal Testing Machine 1200KN
Universal High Temperature tensile testing machine 600KN
Automatic Impact Testing Machine 750J
1000kN Capacity Bend Testing Machine
Drop Weight Tear Testing (DWTT-100,000J Capacity)
HIC/NACE Testing, SSCC, Deflectometer setting device (4-point bend test)
Vicker, Rockwell and Brinell hardness Testing Machine
Marketing Strategy & Marketing Mix
Marketing Strategy of Jindal Steel and Power analyses the brand with the marketing mix
framework which covers the 4Ps (Product, Price, Place, Promotion). There are several
marketing strategies like product innovation, pricing approach, promotion planning etc.
These business strategies, based on Jindal Steel and Power marketing mix, help the brand
succeed.
Jindal Steel and Power marketing strategy helps the brand/company to position itself
competitively in the market and achieve its business goals & objectives.
Let us start the Jindal Steel and Power Marketing Strategy & Mix to understand its product,
pricing, advertising & distribution strategies:
Jindal Steel and Power Product Strategy:
The product strategy and mix in Jindal Steel and Power marketing strategy can be
explained as follows:
Jindal Steel and Power is one of the leading Indian steel manufacturers. The major products
manufactured by Jindal Steel and Power in its marketing mix include Long Rails and Flash0
Butt Welded Rail Panels with customised specifications. Parallel Flange beams and
columns with provision for ultimate design flexibility to structural designers. Jindal Steel and
Power is equipped with the state of the art plate mill that can produce plates and coils of 5
meter and 3 meter respectively. Angles and Channels provided have features of excellent
durability, superior Weldability and superior straightness and strict dimensional accuracy.
The TMT rebars confirm to BIS – 1786:2008 specification and the company developed
ready to use steel through its innovative product cur n bend bars. The wire rods come with
high quality and dimensional precision. Jindal Steel and Power has added fabrication
sections by offering H type beams, I type beams, box sections and star columns. The speed
floor is a lightweight suspended concrete floor system which is easy and quick to install.
Jindal Steel and Power Price/Pricing Strategy:

Below is the pricing strategy in Jindal Steel and Power marketing strategy:
Jindal Steel and Power is primarily focused on competitor pricing in its marketing
mix.
The major competition faced by Jindal steel are TATA steel, SAIL and ESSAR group.
Jindal Steel and Power limited has projected revenues of 52.97 billion for Quarter 3
of year 2017. The pricing decision is also influenced by Production Coast, Market
demand, competition and other government regulation. The pricing strategy adopted
is Market penetration strategy by Jindal steel. The pricing decisions are taken after
careful deliberation since it influences the sales volume and profit margins and long-
term profit objectives. Since Jindal Steel and Power is a leading manufacturer of
steel it has focused on economies of scale i.e. production in bulk to reduce the
average price. Jindal is focusing on reducing costs and increasing the productivity
with advanced technology and implementation of efficient processes. It also avoids
inventory build-up and making the production market driven.
Jindal Steel and Power Promotion & Advertising Strategy:

The promotional and advertising strategy in the Jindal Steel and Power marketing strategy is
as follows:
Jindal Steel and Power is venturing into global marketing strategies so that it can deploy
assets for market access purpose. It has released advertisements called Jindal Panther to
promote TMT Bars and has released a documentary on its production process. The
documentary indicates the processes used and how the sustainable development has been
taken care. Jindal Steel and Power promotes its products to customers by indicating that it
can provide customised products depending on customer requirements. The communication
tools used for various launch brand launches were Outdoor advertising, print ads and
employing sales force to promote the brand. It also promotes its products through its
Facebook page and honours people through its Rashtriya Swamyamsiddh Awards for
exemplary behaviour of courage. Jindal Steel and Power introduced internal campaigns to
bring customer centric message to employees. The branding helped Jindal steel to help
stabilize the flow of revenues during business downturns. The communication tools used was
print ads and outdoor advertising. Hence the marketing mix of Jindal Steel and Power is
covered.
Jindal Steel and Power Place & Distribution Strategy:
Following is the distribution strategy in the Jindal Steel and Power marketing mix:

Jindal Steel and Power distributes its products through direct supply channels, stockyards,
consignment agents and external processing agents. It aims to providing a satisfactory buying
experience through branded distribution channels. Jindal Steel and Power’s distributor
partners are available across India and stockyards are accessible in major cities. The list can
be downloaded from the company website. The process involved for distribution is it
connects to direct supply channels then the steel is sent to stock yards further linked to
consignment agent and processed by external processing agent and the final stage involved
wide distribution network and retailers. The power is sold to state electricity boards and
other distributors.

The various hydroelectric projects are Etalin Hydroelectric Project, Arunachal Pradesh (3097
MW), Kamala Hydroelectric Project, Arunachal Pradesh (1800 MW), and Attunli
Hydroelectric Project, Arunachal Pradesh (500 MW).
Direct and / or Indirect Channel Distribution Channel
Opportunities and Challenges:

On the back of sustained domestic demand, India’s steel industry witnessed robust growth in the last
10–12 years. Since 2008, production has gone up by 75% while domestic steel demand has grown by
around 80%. Steel-making capacity has also increased in tandem, and the growth has been fairly
organic.7 The Indian government has always supported the steel industry and introduced the National
Steel Policy in 2017, which envisions the growth trajectory of the Indian steel industry till 2030–31.
The broad contours of the policy are as follows:
• Steel-making capacity is expected to reach 300 million tons per annum by 2030–31.
• Crude steel production is expected to reach 255 million tons by 2030–31, at 85% capacity utilization.
• Production of finished steel to reach 230 million tons, assuming a yield loss of 10% for conversion of
crude steel to finished steel – that is, a conversion ratio of 90%.
• With 24 million tons of net exports, consumption is expected to reach 206 million tons by 2030–31.
• As a result, per capita steel consumption is anticipated to rise to 160 kg. • An additional investment
of INR 10 lakh crore is envisaged.
Construction sector:

The sector includes physical infrastructure (excluding railways) and real estate, and contributes roughly 62% of
India’s steel use or steel demand. The sector grew by 8.6% in 2018. Although growth is expected to slow down to
5.4% in 2019, the sector is again expected to pick up in 2020 and beyond, growing by around 7% till 2024. The
infrastructure sector, currently a huge focus area of the government, will drive growth in this sector as well as
overall steel demand. The real estate sector is growing at a CAGR of over 4% and the affordable housing and smart
cities initiatives will drive growth in this sub-segment.

Railways:

This sector, which contributes 3% of steel demand, is growing at a fast pace. It grew by 13.4% in 201814 and is
expected to grow by more than 20% in 2019.15 Projects like 100% track electrification (electrification of 16,540
track km by 2021–22), dedicated freight corridors (of over 3350 km) connecting industrial hubs in western and
eastern India and high-speed rail corridors are expected to boost steel demand significantly.
Automobiles:

The Indian automotive industry is the fourth largest in the world. It contributes to around 9% of steel demand in India.
India is the largest manufacturer of two-wheelers, three-wheelers and tractors, the fourth largest producer of
passenger vehicles, and the seventh largest in commercial vehicles in the world. Two-wheelers occupy a dominant
position with an 81% market share and overall passenger vehicles compose 13% of the market. The Government of
India announced the Automotive Mission Plan 2016-26 (AMP 2026) in 2015. The plan outlines the vision for all sub-
segments in terms of size, global footprint and technological maturity, etc. It aims at sustained automotive growth and
bringing India at par with the global auto giants. Therefore, steel demand from the automotive sector is expected to
be sustained, despite the temporary blip in growth this year. However, the Indian government is putting a significant
thrust on electric vehicles, which will require less steel as these vehicles have fewer auto components.
Observations:

The steel group of companies in India plays an important role in development of the Indian economy, which is
mainly engaged in manufacturing the steel products. A brief profile steel industry, which includes the introduction,
steel industry that is classified as primary producers and secondary (down stream) producers, introduction of steel
industry, history of steel industry, global steel industry, demand of steel in India, supply of steel in India, demand
supply mismatch, production of steel in India, cost and revenue concept, export and import, major players of steel,
competition analysis, merger and acquisition, swot analysis, expected growth, factor holding back to Indian steel,
and factor for financial crisis, critical success factors , global perspective and outlook which includes facts and
figure about exports, import and production capital of Indian steel industry.
Findings:

1.The company should try to increase the production so as to get economies of large-scale production. It will
assist in raising the rate of return on capital employed.
2.The selected steel Group of Companies is the capital intensive in nature but the policy of purchase of fixed
assets should be carefully planned and reviewed so that the funds may be properly utilized.
3.The selected steel units should try to match the amount of working with the sales trends. Where there is a
deficit of working capital, they should try to build on adequate amount of working capital. Where, there is an
excessive working capital, it should be invested either in trade securities or should be used to repay borrowings.
4.Improper planning and delays in implementation of projects lead to rise in their cost. So properly planning
should be made.
Suggestions:

1.Public sector enterprises have long enjoyed a monopolistic position. Private sector was not allowed entry. This, in
the absence of any competition, means that any performance was good performance. Due to absence of competitor
there was no incentive to cut down costs or improve the quality of the product.
2.The steel companies should reduce power and fuel consumption by using low as content coal (imported coal),
lignite, agro waste product especially ground nut husk, and beggars should be used as coal substitute.
3.The government should minimize the subsidy and encourage the capital market for the steel companies.