Case Studies in Marketing

13

Opportunities and Challenges in By-product Marketing^∗

BACKGROUND

The Steel Plant of India (SPI) is a public sector integrated steel plant under the Government of India. It is located in the eastern part of the country where basic raw materials like iron ore, water, coal and abundant limestone deposits are available. There are three other major steel plants in its vicinity, all located within a range of 250 km. of each other. The products of the plant are essentially steel plates, hot rolled coils and hot rolled sheets. The plant has been operational for the last 35 years and, traditionally, there has been a major market for these products in India as well as abroad. SPI’s annual turnover from these products has hovered around Rs. 30 billion ...