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HOSPET STEELS LIMITED GINIGERA.

KOPPAL
BETTER STEELS THROUGH BETTER TECHNOLGY

INTRODUCTION Steel is crucial to the development of any modern economy and is considered to be the backbone of human civilization. The level of per capita consumption of steel is treated as an important index of the level of socioeconomic development and living standards of the people in any country. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development. Steel industry was in the vanguard in the liberalization of the industrial Sector and has made rapid strides since then. The new Greenfield plants represent the latest in technology. Output has increased, the industry has moved up in n the value chain and exports have raised consequent to a greater integration with the global economy. The new plants have also brought about a greater regional dispersion easing the domestic supply position notably in the western region. At the same time, the domestic steel industry faces new challenges. Some of these relate to the trade barriers in developed markets and certain structural problems of the domestic industry notably due to the high cost of commissioning of new projects. The domestic demand too has not improved to significant levels. The litmus test of the steel industry will be to surmount these difficulties and remain globally competitive.

HISTORY OF STEEL

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Steel was discovered by the Chinese under the reign of Han dynasty in 202 BC till 220 AD. Prior to steel, iron was a very popular metal and it was used all over the globe. Even the time period of around 2 to 3 thousand years before Christ is termed as Iron Age as iron was vastly used in that period in each and every part of life. But, with the change in time and technology, people were able to find an even stronger and harder material than iron that was steel. Using iron had some disadvantages but this alloy of iron and carbon fulfilled all that iron couldnt do. The Chinese people invented steel as it was harder than iron and it could serve better if it is used in making weapons. One legend says that the sword of the first Han emperor was made of steel only. From China, the process of making steel from iron spread to its south and reached India. High quality steel was being produced in southern India in as early as 300 BC. Most of the steel then was exported from Asia only. Around 9th century AD, the smiths in the Middle East developed techniques to produce sharp and flexible steel blades. In the 17th century, smiths in Europe came to know about a new process of cementation to produce steel. Also, other new and improved technologies were gradually developed and steel soon became the key factor on which most of the economies of the world started depending.

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THE GLOBAL STEEL INDUSTRY The current global steel industry is in its best position in comparing to last decades. The price has been rising continuously. The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace. The steel industry is enjoying its 6th consecutive years of growth in supply and demand. And there is many more merger and acquisitions which overall buoyed the industry and showed some good results. The subprime crisis has lead to the recession in economy of different countries, which may lead to have a negative effect on whole steel industry in coming years. However steel production and consumption will be supported by continuous economic growth.

CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL INDUSTRY The countries like China, Japan, India and South Korea are in the top of the above in steel production in Asian countries. China accounts for one third of total production i.e. 419m ton, Japan accounts for 9% i.e. 118 m ton, India accounts for 53m ton and South Korea is accounted for 49m ton, which all totally becomes more than 50% of global production. Apart from this USA, BRAZIL, UK accounts for the major chunk of the whole growth.

Country Wise Crude Steel Production

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STEEL INDUSTRY IN INDIA Steel has been the key material with which the world has reached to a developed position. All the engineering machines, mechanical tools and most importantly building and construction structures like bars, rods, channels, wires, angles etc are made of steel for its feature being hard and adaptable. Earlier when the alloy of steel was not discovered, iron was used for the said purposes but iron is usually prone to rust and is not so strong. Steel is a highly wanted alloy over the world. All the countries need steel for the infrastructural development and overall growth. Steel has a variety of grades i.e. above 2000 but is mainly categorized in divisions steel flat and steel long, depending on the shape of steel manufactured. Steel flat includes steel products in flat, plate, sheet or strip shapes. The plate

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shaped steel products are usually 10 to 200 mm and thin rolled strip products are of 1 to 10 mm in dimension. Steel flat is mostly used in construction, shipbuilding, pipes and boiler applications. Steel long Category includes steel products in long, bar or rod shape like reinforced rods made of sponge iron. The steel long products are required to produce concrete, blocks, bars, tools, gears and engineering products. After independence, successive governments placed great emphasis on the development of an Indian steel industry. In Financial Year 1991, the six major plants, of which five were in the public sector, produced 10 million tons. The rest of India steel production, 4.7 million tons, came from 180 small plants, almost all of which were in the private sector. India's Steel production more than doubled during the 1980s but still did not meet the demand in the mid1990s, the government was seeking private-sector investment in new steel plants. Production was projected to increase substantially as the result of plans to set up a 1 million ton steel plant and three pig-iron plants totaling 600,000 tons capacity in West Bengal, with Chinese technical assistance and financial investment. The commissioning of Tata Iron & Steel Company's production unit at Jamshedpur, Bihar in 1911-12 heralded the beginning of modern steel industry in India. At the time of Independence in 1947 India's steel production was only 1.25 Mt of crude steel. Following independence and the commencement of five year plans, the Government of India decided to set up four integrated steel plants at Rourkela, Durgapur, Bhilai and Bokaro. The Bokaro plant was commissioned in 1972. The most recent addition is a 3 Mt integrated steel plant with modern technology at Visakhapatnam. Steel Authority of India (SAIL) accounts for over 40% of India's crude steel production. SAIL comprises of nine plants, including five integrated and four special steel plants. Of these one was nationalized and two were acquired; several were set up in collaboration with foreign companies. SAIL also owns mines and subsidiary companies. STEEL PRODUCTION IN INDIA

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India is one of the few countries where the steel industry is poised for rapid growth. Indias share in world production of crude steel increased from 1.5% in 1981 to around 3.5 % in 2004. While plant closures and privatization are rare in India, the private sector is considered to be the engine of growth in the steel industry and technological changes and modernization are taking place in both the public and the private sector integrated steel plants in India. Steel production of India accounted for 14.33 million tons in 1990-91, which gradually increased to 36.12 million tonnes in 2003-04, as shown in Table III. The Indian steel industry got a giant importance in the recent past when the Tata Steel purchased the Corus steel. Today India plays a significant role in the production of steel in the world. The Indian steel industry is growing at 8.74 % of CAGR. Steel demand continued to remain upbeat in 2008-2009 with consumption of finished steel growing by a decent 6.8% during April-may 2008. During a same period import surged by a healthy 10 % to 0.7 million tonnes. While export reported a 33% decline to 0.6 million tonnes. While imports and consumption of finished steel reported a healthy rise, production of the steel continued to rise at a tepid pace. During April 2008 finished steel output rose by a modest 3.8 %. Further in may it increased by 5.2%. Aggregate production growth during April-may stood at 5.1 % In view of no major capacities coming on stream we estimate finished steel production to touch 60 million tonnes in 2008-2009. On the basis for last year of 52.7 million tonnes, the steel production growth for 2008-2009 comes to around 14 %. However the joint plant committee has been revising its annual figures upwards for the last 2-3 years. In the event of an upward revision in the figures of 2007-2008, the actual growth in steel production in 2008-2009 would turn out to be less as compared to our estimates.

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MAJOR PLAYERS OF STEEL IN INDIA PUBLIC SECTOR STEEL AUTHORITY OF INDIA LIMITED (SAIL) Steel Authority of India Limited (SAIL) is a company registered under the Indian Companies Act, 1956 and is an enterprise of the Government of India. RASHTRIYA ISPAT NIGAM LTD. (RINL) RINL, the corporate entity of Visakhapatnmam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in Andhra Pradesh. MSTC LTD. MSTC Ltd. (formerly Metal Scrap Trade Corporation Ltd.) was set up on the 9th September, 1964 as a canalizing agency for the export of scrap from the country. FERRO SCRAP NIGAM LTD. (FSNL) FSNL is a wholly owned subsidiary of MSTC Ltd. with a paid up capital of Rs. 200 lakh HINDUSTAN STEELWORKS CONSTRUCTION LTD. (HSCL) HSCL was incorporated in June 1964 with the primary objective of creating in the Public Sector an organization capable of undertaking complete construction of modern integrated Steel Plants.

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MECON LTD. MECON is one of the leading multi-disciplinary design, engineering, consultancy and contracting organization in the field of iron & steel, chemicals, refineries & petrochemicals, power, roads & highways, railways, water management, ports & harbours, gas & oil, pipelines, non ferrous, mining, general engineering, environmental engineering and other related/ diversified areas with extensive overseas experience. PRIVATE SECTOR The private sector of the Steel Industry is currently playing an important and dominant role in production and growth of steel industry in the country. Private sector steel players have contributed nearly 67% of total steel production of 38.08 million tonnes to the country during the period April-December, 2007. The private sector units consist of both major steel producers on one hand and relatively smaller and medium units such as Sponge iron plants, Mini Blast Furnace units, Electric Arc Furnaces, Induction Furnaces, Rerolling Mills, Cold-rolling Mills and Coating units on the other. They not only play an important role in production of primary and secondary steel, but also contribute substantial value addition in terms of quality, innovation and cost effective. TATA STEEL LTD. Tata Steel has an integrated steel plant, with an annual crude steel making capacity of 5 million tonnes located at Jamshedpur, Jharkhand. ESSAR STEEL LTD. (ESL) Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a footprint covering India, Canada, USA, the Middle East and Asia. JSW STEEL LTD. JSW Steel is a 3.8 MTPA integrated steel plant, having a process route consisting broadly of Iron Ore Beneficiation Pelletisation Sintering Coke making Iron making

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through Blast Furnace as well as Corex process Steel making through: BOF- Continuous Casting of slabs Hot Strip Rolling Cold Rolling Mills. ISPAT INDUSTRIES LTD. (IIL) IIL has set up one of the largest integrated steel plants in the private sector in India at Dolvi in Raigad District, Maharashtra with a capacity to manufacture 3 million tones per annum of hot rolled steel coils (HRC). GROWTH TREND OF PIG IRON SECTOR IN INDIA Before liberalization the pig iron industry was monopolized by the Integral steel plants to utilize the liberalization policy initiated by the Government Decline the pig iron production and paved the way of helping the ISPs be utilize Pig iron for making steel to gain vale addition. The integrated steel plant ( ISP), is the major supplier of pig iron. Public Sector (ISP) contributions us to 90% of the pig iron supply. According to the steel Ministry report demand for pig iron is estimated to increase by a whopping 37% Over next 8 years. The demand and supply gap I slatted to touch 2.14 million tones by the years 200

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MARKET SHARE OF LEADING PLAYERS IN IRON ANDSTEEL INDUSTRY COMPANY PRODUCTION STEEL(IN TONNES) OF MARKET SHARE (IN

MILLION PERCENTAGETERMS)

SAIL

13.5

32%

TISCO

5.2

11%

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RNIL ESSAR,ISPAT,JSWL OTHERS TOTAL

3.5 8.4 14.5 45.1

8% 19% 30% 100%

(J O INT VENTURER OF KALYANI STEEL& MUKUND LIMITED )

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HOSPET STEELS is a World Class Steel plant set up by way of strategic alliance between M/s Mukand limited of Mumbai and M/s Kalyani Steels Limited of Pune. Sri B.N.Kalyani is the Chairman & Managing Director of M/s Kalyani Group of Companies and Sri Niraj Bajaj is the Chairman for M/s Mukand Limited. Sri Rajesh V. Shah is the Co-Chairman & Managing Director and Sri Suketu V.Shah is the Jt.Managing Director for M/s Mukand Limited. This plant is located at GINIGERA in the KOPPAL District in North Karnataka. This steel plant is headed by Sri R.Sampath Kumar, Chief Executive. This steel plant is located near Hospet. The world heritage centre HAMPI and Tungabhadra Dam are situated very near to this plant. HOSPET STEELS Steel Plant Consists of Iron Making Division, Steel Making Division and Rolling Mill Division. It is one of the largest manufacturers of Alloy and Special Steels in India and renowned for its quality worldwide. Kalyani Group of industries: The Kalyani Group is one of the leading industrial houses in India, having core businesses in Steel and Steel based products, forgings and automotive components. The groups annual turnover is over US$ 1.2 billion and has joint ventures with some of the world leaders such as Meritor (USA), Carpenter Technology Corporation (USA), Bosch (Germany), Hayes,Lemmerz,(Germany)etc. Bharat Forge Ltd is the flagship company of Kalyani group; it is the 2nd largest forging company in the world and the largest domestic player with a share of 80% in axle components and engine components. Apart from Bharat Forge Ltd., the other major companies in the group are Kalyani Brakes, Kalyani Steels, Kalyani Carpenter Special Steels, Kalyani Lemmerz, Automotive Axles, Kalyani Thermal Systems, BFL Utilities, Epicenter and Synise Technologies. Kalyani Steels:

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Kalyani Steel Ltd was established in 1973. Kalyani Steels is one of the major producers of Alloy Steels. The first technology update was implemented through technology tie-up with AICHI Steels of Japan. The Kalyani Steels Plant which was started as a backward integration to supply Bharat Forge its requirement of Forging Grade Steel. The Kalyani Steel Plant of Pune was hived of to Kalyani Carpenter Special Steels Ltd. (KCSSL). Kalyani Steels later decided to open a plant at Hospet, Karnataka. Due to financial constraints it went in with a Joint Venture with Mukand Ltd. So the plant in Hospet has 58% Mukand investments and 42% Kalyani Investments. The work on the plant started in 1995 and the plant became operational in 1998. -:LOCATION:Hospet steel is a joint venture of Mukund Ltd. (58%) & Kalyani Steels Ltd. (42%). It is situated 10 kms from Koppal and 20 Kms away from Hospet City. The employees and officers of Hospet steels stay either at Hospet or Koppal. Hopset has basic infrastructure like housing, schooling, hospitals etc., it is tourist Centre on account of Historical place. Hampi, T.B.Dam situated 60 kms with gardens. Hospet Steels is setting up a world class integrated steel plant with Alloy steel making division and Rolling Mills. The production facilities are, Steel Melting Shop, Energy Optimizing Furnace, Ladle Furnace, Vacuums Degassing. Continuous Casting Machine and the Rolling Mills. The plant is set-up with an investment of about Rs.1800 Crores and is generated to be one of the finest steel Plants in the country. The installed capacity is 6,00,000 MT of special alloy steel per annum. To fulfill the plant requirement water is being pumped from Tungabhadra Dam. Necessary water softening and demineralization facility are also provided. Power has been taken from National Grid of kV line from Ramgundam supplies power to BSAL. the company is also putting up power plant of 12-mega watt capacity.

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M I N E S Site Started in Area Lease Period Iron Ore Reserves Calibrated ore Output Size Fe. Content Gangue Content : : : : : : : : : Jambunathanahalli Iron OreMines. Apr-2003. 51.71 Hectares. 10 Years. 7. 5 Million Tons. 12,000 MT/month 10-40 mm. > 65%. < 3%.

KEY INFORMATION Land Area Installed Capacity Total Man Power Contract Demand Avg. Energy Consumption : : : : : 372 Acres. 6, 00,000 MT/Annum. 950. 20.4 MVA. 12.5 MU/ Month 15

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Avg. Electricity Bill Water Consumption Water Reservoir Oxygen Plant (Praxair)

: : : :

Rs 32 Million / Month 3000 m3/day. 6.00 Lakh Cu M. 250-350TPD.

-: CORPORATE OFFICE: KALANI STEELS LTD PUNE MUKUND LTD BOMBAY

-: BANKERS: Canara Bank. IDBI State Bank of India. Indian Bank. HDFC Bank Allahabad Bank -: MAJOR VENDORS: Minerals Sales Pvt. R.P.Mines. G.G.Brothers. P.B.S.Mines. Laxmi Mill Mining Co Femano Sandor Femanto, Sandur

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Tata iron & steels Co.Ltd. Dalini enterprises Navabharat Ferro alloys Ltd. -: MAJOR COMPETITORS:1. Siscol, Salem 2. Vishweshwaraya Iron and Steel Ltd. [VISL], Bhadravathi. 3. Kirloskar Ferrous 4. Shesha Industries, Goa.

PRODUCT PROFILE
GRADES (As per Indian & various International Standards): Carbon and Alloy constructional Steels. Spring steels Ball bearing steels Any other special grades of steel as per customers requirements. CATEGORIES OF STEEL Cold Heading Quality Forging Quality Ball Bearing Steel High Carbon Steel Spl. Electrode Quality Spring Steel Seamless Tubes

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Steel For High Temperature Boiler Application Micro Alloy Steel SIZE RANGE:As Cast Products: Billets : 125,160, to 200x200 mm squares. Blooms Rounds : 240x280mm and 200x200mmrectengale : 160, 220, 200, mm dia Rounds.

As ROLLED PRODUCTS:Round RCS : 105, to 135 mm dia. :75,95,100,120,115,140,160mm

Any other size mutually agreed MAJOR FACILITIES Mini Blast Furnace Energy Optimizing Furnace Ladle Furnace Vacuum Degassing Unit Bloom Caster Billet caster Blooming Mill HV Mill - 3 nos. - 50 MT. - 50 MT x 2 nos. - 50 MT. x2nos - Three strands. - Three strands.

Materials Required

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Iron ore Coke Dolomite Manganese

Ferro alloys Limestone Quartz

MAJOR CUSTOMER APPROVALS CUSTOMER 1 2 3 4 5 6 7 8 9 Bajaj Auto Ltd. Delphi Automotive Sundaram Fastners Ltd. Motor Industries Co Ltd.(MICO) LML Kirloskar Oil Engines Ltd. Mahindra & Mahindra Bharat Forge Ltd GNA YEAR OF APPROVED 1999 July . 1999 September . 1999 September . 1999 September . 1999 October . 1999 October . 1999 November . 1999 November . 1999 November . 19

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10 Tata Motors 11 Automotive Axles 12 Ashok Leyland 13 Shardlow (India) 14 M M Forgings Ltd. 15 Spicer India Ltd. 16 Bharat Heavy Electrical Ltd(Trichy) 17 Bharat Gears Ltd.

2000 January . 2000 January . 2000 February . 2000 August . 2000 October. 2000 November 2001 May . 2001 July.

CUSTOMER 18 Kalyani Forge 19 Gabriel India Ltd. 20 Hi- Tech Gears 21 Sona steering 22 Jamuna N.H.K 23 The Indian card clothing co. ltd. 24 DANA Corporation 25 CATERPILLAR INC. USA 26 G K N Drive Shafts (I) Ltd. 27 IBR Self Certification 28 Arvin Meritor

YEAR OF APPROVED 2001 September . 2001 September . 2001 October . 2001 November . 2001 December . 2002 January . 2002 April. 2002 May. 2002 June. 2002 July. 2002 August. 20

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29 RDSO Approval 30 FM Billiton AL,South Africa 31 Wuxi Diesel Engine Works, China 32 Honda Motors & Scooters (I) Ltd. 33 Ford India Ltd, 34 SKF Ltd
GM PPC/Mkt

2002 September. 2003 February. 2003 April. 2003 October. 2003 November. 2004 April

P.C
VP OAD DGM F&A

Chief Executive

Safety/ Envirot GM HOSPET STEELS LIMITEDHRD ORGANIZATION STRUCTURE VP Comm. Mgr. MIS EVP Maint.& Service VP RMS GM SMS DGM Mines W.B/Civil/Ho rti GM EM&Auto DGM Utilities

DGM MechMaint

Maint Maint

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Mgr. Iron 21

M&S 235

S&E 3

MIS 9

Com 30

P&A 35

F&A 30

QAD 46

PPC/Mkt 34

Total 734+4

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FUNCTIONAL AREAS HUMAN RESOURCE DEPARTMENT Personnel Department is a part of the management function. Primarily these departments will deal with human relationship within & outside the organization and department will maintain me feeling in the organization and make the employee/individual to contribute to the effective working of the undertaking. The Personnel Department will coordinate with all the departments to maintain a harmonious industrial relationship in the industry. The Personnel Department in fact more than equipment, machinery, building, furniture and fixtures and organization identity and purpose which mainly depended on the human resource which it can procure, maintain develop and utilize to accomplish the

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organizations goal. The management of human resource is more likely to known as Personnel Management. The role of the personnel management is an organization is a more valuable to achieve the organizations goals. The Personal Department will conduct the advanced technical training to develop the employees skills at the works. Functions:1. 2. Personnel Department provides a set of techniques for handling people with professional standard. Personnel Department helps the employee to utilize their capacities to the maximum level and to attain not only individual satisfaction but also satisfaction as a part of the work group. 3. 4. 5. 6. 7. 8. 9. Provide growth-engineering function. Manpower planning. Recruitment and Selection. Introduction of the newly recruited employee. Training and development of the employee. Motivation/Counseling. Grievance handling.

10. In time communication to the employee. 11. Appraisals. 12. Promotion. 13. Discipline & disciplinary actions. 14. Health, safety, welfare of the employee. Apart from the above functions, the personnel department also liaison with various statutory bodies like Labour department, Factory Inspectorate department, P.F. Office etc., It is the

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responsibility of the department to prepare the statutory returns falls under various acts and submit the same to the concerned authority within the stipulated time. SELECTION PROCESS First the applications were received, then the candidates are scrutinized, then they send call letter to the candidates, then the interview is taken by Head of the Departments & then by General Manager of HRD, then CEO takes the interview & induction will be done for selected candidates. At every stage scrutinizing is there. SCOPE: - The scope of the Personnel Department covers the following points. Organizations: 1. Planning. 2. Motivation. 3. Wage and Salary Administration. 4. Integrating change techniques. 5. Keeping organization sound and protective. 6. Industrial relations. 7. Organization development. Work Place: a) Adoption of changing technology. b) Problem identification. c) Behavior approach. d) Grievance handling. e) Psychosocial approach

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Personnel Department: a) b) c) d) e) f) Individual: Personality Development. Communication. Leadership. Quality of work life. Employment security. Process orientation. Concern with strategy. R & D. Pro-active Personnel Policy Development of the department.

Apartment from the above, the following points also comes under the scope of the Personnel Department. Career growth. Performance appraisal. Wage policy. Safety. Welfare. Training & Development. Employee relation. Community development.

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In case of any change in social, economic and political environment, the personnel department scope will extend and also included the following points. Anticipating problem area. Diagnosing the environment.

Becoming relevant to the top management. Developing personnel policies for long-term purpose. FUTURE PLANS: a. Planning to conduct an advanced technical programes. Introducing reward scheme for shop in quality, safety, house keeping, inventions etc., b. Preparation of comprehensive O.D. plan. c. Survey on organization climate. d. Introduction of suggestion scheme. e. Preparation of job description. f. Planning to conduct welfare, facilities to the employees. g. Adult literacy programmed for the benefit of neighboring villagers etc., DUTIES OF PERSONNEL OFFICERS: 1. manpower planning. 2. employee. 3. Record keeping and maintain the personnel files. To assist seniors in recruitment, selection, induction of the To assist superior to formulate the organization chart and Professionalism with line managers. Relationship with line managers. Research orientation.

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4. training requirement. 5. 6. 7. 8. 9. 10.

To co-ordinate with various departments and find out the Maintaining of wage and salary administration. Assist seniors to conduct the training programs. To assist seniors in evaluation and appraisal. Preparation of periodical evaluation sheets. To assist seniors to conduct

motivation/counseling/grievance handling. To take part in the statutory welfare activities.

Shift schedule: The company howls 3 shifts in a day. Each shift carries 8 hours like,

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Shifts A B C General

Working hours 6A.M. to 2.00P.M. 2.00P.M. to 10.00P.M. 10.00P.M. to 6.00A.M. 8:45.AM. to 5.00P.M.

The wage determination process: In the HSL has good and systematic process for the determination of wages. The wage is determined following measures like, 1) Job performance, 2) Experience, 3) Individual performance Time of payment of wage: In HSL has systematic time of payment of wage. In HSL the wage is given before the 7th and 10th of the every month to all employees. FRINGE BENEFITS/FACILITIES In HSL various types of benefits are to be provided for the purpose betterment of employees. Those have given as under. (i) (ii) (iii) (iv) Transport Facilities: Canteen facilities: Picnic facilities: Benevolent fund:

(v)Leave facility/holidays: i) ii) iii) Housing facilities (HRA): Petrol allowances: Benevolent Fund:

(iv)Superannuation scheme: (v)GSLI (Group Saving Linked Insurance Scheme): Statutory Benefits: In HSL provide various type of statutory benefits for all employees, those are like:

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1) Bonus Benefits: 2) Gratuity Benefits: 3) Provident fund: &Pension scheme: Compensation: The Company will be provided compensation to the employee

SECURITY DEPARTMENT Security Department is the index of the company and an independent department of the organization. The primary function of this department is to safeguard the Personnel materials and property. I also collect the information regarding the employees and surroundings. Security Department also takes care of fire incidence. They also look transport for Personnel. The Security Department is appointed by President. This department consists of 26 guards totally. These guards are provided by the Agency. Qualities For Security Staff:The Security Department expects certain qualities from the guards while appointing for the post. They are as follows He should be physically fit. He should have security background. He should be intelligent and initiative.

The entrance of the factory consists of 2 main gates. They are 1. Gate No.1:- It allows only visitors and incoming materials. 2. Gate No.2:- It allows materials going out after dispatched and employees. Duties Of Guards Of Main Gate:-

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They should not allow any vehicle without receiving the gate pass. They should leave only the visitors and incoming materials from Gate No.1 with pass. They should leave only those trucks taking out materials after dispatched and not any other vehicles. They should check the vehicle before departing The security department maintains certain records and reports, such as 1. Material gate entry registers. 2. Retainable and Non-retainable register. 3. Vehicle in and vehicle out register. 4. Visitors pass register. 5. Materials dispatch register. 6. Visitors pass. 7. Vehicle entries pass. 8. Security law book. 9. Bus arriving register. 10. Personnel movement registers. Mr. Patil heads the security department.

Assistant supervisor

Mgr. Security Medical

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PRODUCTION DEPARTMENT Production department in Hospet Steels Ltd. is divided into two sections. They are as follows1. Mini Blast furnace(MBF) 2. Steel Melting Shop(SMS) 3. Rolling Mill. MINI BLAST FURNACE Raw materials for MBF: Iron ore: The iron ore using is Hematite (Fe2O3). Ore contains Fe > 63%, SiO2 : 2.2% - 2.3%, Al2O3 : 2 3%, P : 0.04%, S : 0.01%, Moisture : 2 2.50% and density of about 2.20gm/cm3.The size of the iron ore using for MBF is above 15mm, generally 40 50mm. Iron ore density is in the range of 2.20gm/cm3 . Hospet steels have two iron ore mines. These mining operations at: Subbarayanahalli Iron ore mines: Area Iron ore reserves Calibrated ore output Size Fe content Gangue content : 160 Hectares. : 17.5 million tons. : 65,000 MT / month. : 10-40 mm. : > 65% : < 3% 31

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Jambunathanahalli Iron ore mines: Area Iron ore reserves Calibrated ore output Size Fe content Gangue content IRON MAKING DIVISION (MBF) This division is invested by Kalyani Ltd, In this process Iron is manufactured through MBF. Iron ore & coke are the basic material consumed in MBF. The output of this process is solid pig iron & liquid pig iron or melts iron. Raw materials used in manufacturing pig iron are: Iron ore casually hematite Coke Lime stone Dolomite Manganese ore BHQ Coke: Coke is used as a fuel in MBF. This contains 84 90% fixed carbon, 4 7% moisture, 0.40 0.70% sulphur with low ash content. The size of coke used in the MBF is above 20 mm. The density is in the range of 0.60 0.65 gm/cm3. Coke provides the following in the MBF. Heat for endothermic reactions, melting of slag and metal. Reducing gasses for the reduction of iron oxides. Fluxes : 51.71 Hectares. : 7.5 million tons. : 12,000 MT / month. : 10-40 mm. : > 65% : < 3%

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Permeable bed through which slag and metal pass down into the hearth and hot reducing gasses pass upwards.

Flux: A flux is a substance added during smelting to bring down the softening point of the gangue materials, to reduce the viscosity of the slag and to decrease the activity of some of its components to make them stable or unstable in the slag phase. Flux materials used in the Mini blast furnace are lime stone, dolomite, banded hematite quartzite. Lime stone: It contains CaO: 45 48%, MgO: 2.5 3.5%, Al2O3 :1% max, SiO2:5 7%, and loss on ignition is in the range of 45 50%. Limestone density is around 1.70 gm/cm 3; Limestone size used in MBF is in the range of 20 -25 mm. Dolomite: It contains CaO: 30 35%, MgO: 18 22%, SiO2: 2 3% Al2O3 :1% max and loss on ignition is in the range of 45 - 50%. Dolomite density is around 1.70 gm/cm3; size used in MBF is in the range of 20 25 mm. Quartzite: It contains Fe: 38 45%, SiO2: 35 40%, Al2O3 :3% max, moisture <1.5%. Density is around 2 gm/cm3; size used in MBF is in the range of Manganese ore: It contains 26% manganese content. It protects the lining of hearth area. The consumption is 50 Kg/ THM. Product and by products of the mini blast furnace are, 1) 2) 3) Pig Iron (Hot metal) Slag B.F. Gas

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HOSPET STEEL PROCESS FLOW DIAGRAM


IRON ORE COKE LIMESTONE

IRON & STEEL SCRAP (15-30%)

MINI BLAST FURNACES

FLUX (LIME & DOLOMITE)

HOT MOLTEN IRON

FERRO ALLOYS

ENERGY OPTIMISING FURNACE

FERRO ALLOYS

LIQUID STEEL

REFINING LRF
VACUUM DEGASSING

REFINING LRF

CLOSED STREAM CASTING

VD

CLOSED STREAM CASTING

T. COMPUTERISED John Institute of Mgt & Science, Bangalore COMPUTERISED


CONTROL

BLOOM CASTER 10/18 m Radius

BILLET CASTER 9/16 m Radius

34

CONTROL

ROLLING MILL 750 mm, 2 HIGH

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INSPECTION & DESPATCH

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Tuyers and blister pipe in MBF

Cast house area

Charging and gas cleaning system

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STEEL MELTING SHOP The term Steel is in the general sense applied to those alloys of Iron and carbon where the carbon is almost entirely in a combined form the term also apples to those alloys of Iron and carbon which contain other metals whose presence modifies the alloy and are termed alloy or special steel. Steel melting shop is further divided into three sections. They are: a) b) c) d) Energy Optimizing Furnace (EOF) Ladle Refining Furnace (LRF) Continuous casting machine (CCM) Vaccum Degassing Unit (VDU)

a. ENERGY OPTIMIZING FUNRACE (EOF) PROCESS DESCRIPTION:-

The EOF is a new converter for steel making combining the addition of carbon with oxygen blowing after burning and scraps preheating. It officers the unique feature of accepting charges made up of varying ratios of hot metal, scrap, pig iron and DRI.

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The man principle under laying the EOF process is the introduction of oxygen in the bath to react with carbon crating co2 gas, which is subsequently burnt to co2 above the bath but inside the meting vessel. The heat generated by oxidation reactions is used to melt preheated scrap. The carbon required for the reactions is either introduced into the bath as a consistent of hot metal or added in solid form when large percentage of steel scrap is charged. Waste gas sensible heat is utilized in a single or multistage scrap preheated located above the converter. Oxygen injected under heat the liquid level oxidizes carbon-forming co2, which accomplished the task of bath agitation. The resulting intense splashing multiplies the steel surface exposed to the oxygen injected into the atmosphere, accelerating carbon oxidation. THE EOF PROCESS OFFERS Lower capital expenditure. Frequency of production to match the efficiency of continuous casting machine of continuous casting machine. Minimum as electrical power requirement. Simple gas cleaning requirements the scrap preheated is in fact the first stage of gas cleaning. Well-balanced use of O2 with no purely constraints.

The rate of steel making in the EOF process is sufficiently flexible to cope with high demands for steel production and to match closely the demands of the continuous casting machine however variable these may be.

b. LADLE REFINING FURNACE

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Objective: To process the heat i.e., heating, alloying, refining and homogenizing the material as per product standard to meet the product requirement. PROCEDURE: 1. Ensure readiness of ladle refining furnace & VD to take the heat. 2. Place the ladle in LC 1 / LC 2. 3. Start argon purchasing. 4. Bring the ladle car below LRF & Lower the cover power, on. 5. Take sample & temperature. 6. Do alloying. 7. Aim final chemistry. PROCESS: a) b) c) d) e) f) g) Place the ladle in vessel car 1 / car 2 with argon purging hose connection. Check argon purging and adjust purging if LM having more than 100 Kgs After getting signal of lowering roof take temp. Of temp is more than lig + Power on at lowest voltage and current tap. After stabilizing the arcing, increase voltage and current tap as per Add 200kg lime + 60 kg Silicon in running condition. After getting first sample report, add 90% of aim chemistry keeping in view

slag from EOF drain out slag. 50o c take sample. If temp. is less, increase the temp. to required temp. take sample.

requirement.

of tapping addition. Sequence of addition CARBON Si-Mn / Fe-Mn, Fe-Hc Lime / Spar, other Ferro alloy if required. Before cpc / graphite addition for recarbonisation, aim for Si/0.1 and Mn/0.4.

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h)

For CPC/Graphite addition raise the electrode. Increase the argon purging

flow rate. Do the intense purging till CPC/Graphite mixing with KM after mixing the CPC/graphite reduce the argon purging to normal purging and start arcing. i) j) k) l) Add lime (400kg)/spar/carbides mixture in running condition are for 10-15 Check the slag colour it is in white colour, take temp. if temp is more than If the slag is not white in colour, add reducing mixture till slag turns to white After getting 2nd sample report check the desulphurization, if minutes and aim furling + 50 to 60o c temp. liq+60o c take 2nd sample. If less, are till above temp. comes. Then give 2nd sample. in colour send 2nd sample. desulphurization is more than 50% and slag is not in white colour, except Mn & add FeAl, FeSi and CPC in lower range of chemistry, add FeMn and FeCr raise the temp. to lifting temp. m) n) Send 3rd sample/temparature. After getting results add Ferro alloy and CPC to After achieving aim chemistry, temp and cleanness from CCM, shift the aim chemistry send sample of necessary. ladle car to wire feeding station and during CaSi wire feeding adjust argon purging (mild purging) after the feeding do mild purging for 2 minutes. Stop purging add 50 to 60 kg farex. o) Lift the ladle for

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PRECAUTION DURING LADLE SHIFTING The crane operator should use the blue glass whenever required. Ladle man should ensure that no body be present below the ladle having liquid metal. Before lifting ladle crane operator should ensure that the brakes are working properly. Crane operator/Technician ensure that the ladle is placed properly in the vessel car. c.VACCUM DEGASSING UNIT (VDU):This is supper refining process where Vaccum Degassing is done for the grades depending upon the final product application. Vaccum is applied to remove gases like Hydrogen and Nitrogen and other impurities. This process is done only for special grade steels. Process duration at VDU is 15 to 20 minutes approx. d. CONTINUOUS CASTING MACHINE PROCESSDESCRIPTION: - The main process line of POMINI caster includes also: Cantilever tundish cars with overhead running rails and tundish lifting. Lower mechanism (this for high steel grades) High heat transfers mould reciprocated by a short arm, high frequency short Strand guides and fully automatic spray cooling. Withdrawal strengthening unit, which incorporates features for progressive Product collecting and cooling equipment both of packing type for slow

stroke oscillator.

liquid core strand straightening. cooling and turn over type for faster cooling and magnet lifting.

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The liquid steel from the ladle is diverted to the moulds by the tundish, whose capacity is settle to allow: ladle sequencing without dangerous liquid steel level lowering to prevent liquid steel head suitable to reach the desired casting speed; a transit time long enough o permit inclusion flotation and upgrade product a thermal capacity suitable to keep proper casting temperatures and good slag from entering the mould causing breakout;

quality; steel cast ability. The process Core mainly consists of : Mould feeding. Mould liquid steel interaction. Spray cooling Mould feeding is performed by stopped nozzles. Mould liquid steel interaction is primarily caused by mould heat transfer,

which promotes first shell formation along the upper part of the mould walls with subsequent shrinking in the upper-middle part and unstable contact in the middle-lower part of the same. Since the latter is recognized as primarily responsible for product defects and strand failure, most designers efforts have been dealing with increased heat transfer efficiency and a more suitable mould geometry, such as length or taper of the copper tube. For this reason a water velocity in the range of 8 to 10m/s and an effective Water jacket to counteract intermittent boiling and contacts in the middleoverpressure to increase boiling temperature are recommended in the mould lower zone together with a proper tube taper and geometry.

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To avoid detriment effects on heat transfer from salt deposit on mould wall, the cooling water has to be grated to control its temporary hardness. At the mould exit an adjustable roll set will maintain a close centering of the stand while the surface is directly sprayed by three rows of high-pressure nozzles which cause the solidified shall to further grow and consolidate stand shape. To counteract the bulging at design speed in the rectangular section (240 x 280 mm) 1.5m roller containment has to be foreseen underneath the foot roller rows. The mould level automatic control system is an integral part of the mould set. The equipment allows a close control of the liquid level in the mould with improved product quality and operation reliability. A mould oscillator of the short arm, high frequency short stroke type is provided to prevent the steel from sticking to mould walls. The maximum frequency is 300 cycles/min, while the stroke can be set in the range from 0 to 16 mm, in steps. During the withdrawal, the strand is sprayed with water by high pressure nozzle distributed along the curved path, three separate Cooling zones fed by individual flow control valves, automatically controlled by PCL are foreseen according to the cast steel grades. This allows regulating the water volume of each zone as a function of the Casting speed independently of casting speed fluctuation to keep a constant specific amount of water for each steel group. The caster has provision for horizontal travel. Incorporating of mist cooling with its control. The withdrawing straightening Strand speed control. Straightening of the strand from the circular path to a

machine will perform the following functions.

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After the straightening operation, the strand is automatically cut at pre-selected lengths by the cutting unit. The cut blooms are then transferred to the discharge area by, run out roller tables and further collected on cooling beds or directly sent tot the rolling mill for hot charges operation. As soon as the dummy bar head leaves the straightening roll, the disconnecting device separates the dummy bar from the hot strand. After separation, the dummy bar is raised into the storaging system which is automatically rotated to a horizontal position over the stand, thus avoiding dummy bar distortion from the radiant heat and, at the same time, allowing the operator either to prepare the head for the next cast or to change it when the casting size has to be changed. This procedure can be carried out while the machine is in operation in order to reduce preparation time and raise machine availability.

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ROLLING MILL OPERATION

This division is invested by Kalyani Ltd; it is the process to get required size and surface properties of steel. The output of this division is: Rounds RCS Flats : 80,83,90,97.5,100,105,115,125,130mm : 75,90,95,100,120,125,140,160 & 182mm sq : 150*100,160*70,180*80,160*140.

The material comes from SMS section is further processed in this RMS department. The casted material from SMS department comes to the stock yard of RMS through the help of conveyors, & then that material is again reheated n reheating furnace, whose capacity is 35ton per hour through the help of pushers. In furnace there are again division viz., preheating, heating in different zones. Furnace oil is used in the furnace. Then the material comes out from the furnace & rated by the scale called descaller. Then, there are arequired sizes. Then the material is cutte on the side of the bar. Then the material is sent for cooling process. Two types of cooling is done:

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Artificial cooling i.e, through machines. Natural cooling i.e, through natural air

The capacity of rolling is 1.5 lakh tones. The machinery cost of RMS initially was about 200 crores & near about 69 people is working in this section. And the material is inspected by QAD department & sent for dispatching. MARKETING DEPARTMENT Importance of Marketing Marketing is a social process b which individual and groups obtain what they want and what through creating, offering-and freely exchanging products and services of value with others. The essence of marketing is exchange or a transaction intended to satisfy human needs and wants through an exchange process. A demand is a want for which the consumer is prepared to pay a price. A want is anything or a service, the consumers desires or seeks. Wants becomes demand when backed by purchasing power. A need is anything the consumer fells to keep himself alive and healthy. A transaction consists of value between two parties. A transaction differs from a transfer. A transfer may receive nothing in return. The aim of making is to make sales n order to earn reasonable portable profit for the producers. Objectives of Marketing Barker and Anshen say the end of all marketing activities is the satisfaction of human wants through the satisfaction of human wants, profits are rewarded to the business and addition benefit is the inducement of marketing. Now the time has changed and the objective of marketing is more than security profit. The following are the main objectives of modern marketing activities. Marketing Mix Marketing mix is a term used to describe the combination of the four inputs which constitute the core of a companys marketing system. They are

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1. Product 2. Price 3. Place 4. Promotion Department Policy: The policy of Marketing Department is to co-operate with the two companies in getting orders and ensure that it is in proper ratio. To execute order in time and the disposals. Remained should be done immediately. Function: 1) The primary function is to ensure the direct dispatches to the customers. 2) Disposal of generations like slag, scrap. 3) If the requirements are not as per customers requirements then they are disposed by marketing department. Marketing department will directly deal with the customers. This department also responsible for local markets. The competitors of M/s. Hospet Steels Ltd., are, M/s. Musko, M/s. VISL etc., The daily products report will be prepared by PPC and will be authenticated by production people, President and PPC Head. Here the company is directly involved in marketing to the final consumers

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QUALITY ASSURANCE DEPARTMENT Quality assurance division is a customers representative. This department acts as communicating channel between customers and production department. They make steel for automobile industries and also for stimulus tubes. It is also used for transportation of oil and any other fuel. In quality assurance department, marketing department plays in important role. The orders of the customers will be received by the marketing department, then department. This process is called as Contract Review. Then the quality assurance department translates the need of the customers to the production department. This department also inspects the cast and rolled products. It checks the materials before it is taken for production and also tastes the products before dispatching to the customers. Ever since the procurement of the raw material till the dispatch of the final product the function of observation and examination of the quality control department is keen and careful. AIM: To inspect the quality of raw material and finished products and to maintain the grades as per the customers requirement FUNCTION; 1. Adding internal/external chemistry to attain specified standard. 2. Testing the manufactured steels subjects to any cracks or not. 3. To check the raw materials and ferrous oil. 4. Identifying customer 5. Indentifying needs. 6. Converting needs into specialization. QUALITY POLICY:-

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Quality policy of this department is to produce steel, which is based on the part of the world. Their main objective is to make steel very competitive in price. The orders from the customers will be accepted only according to their capacity to produce. MANAGEMENT INFORMATION SYSTEM DEPARTMENT The main function of this department is Computerization. Networking. Setting of Internet and info net. Types of Marketing Information Department a) Order Acceptance System In this system, the orders to produce goods are accepted from the customers. This system has to take into account how much goods to be Produced, when to dispatch, where to dispatch where to deliver the goods and when to deliver the goods etc., b) Production Planning And Control Order acceptance system and introduction planning and control are lined together. Marketing people should know the pending orders. They should know when the goods are to be produced. If good are produced the quality is not cleared. If the quality is cleared the goods are not dispatched. These are the reasons for the orders remaining pending. They should also know who the customers an where the goods to be dispatched. Then they will give the daily production reports. These reports will go to excise department for knowing the stock availability Quality Assurance System In this system, until the quality is cleared the dispatch advice cant be made as per the O.A. then the dispatch channel is prepared. Truck loading sheet is important for quality people to check weather the right product is loaded or not in the truck after that invoicing is done.

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a. Financial Accounting System c. Stores And Purchase System b. Costing System d. Excise System FINANCE DEPARTMENT IMPORTANCE OF FINANCE Finance system ensures adequate organizational financing at a low cost so as to maximize return. It consist of major functions such as getting credit to customers, collection process, cash management, financing capital and so on.The function finance department also includes the preparation of budgetreport. FUNCTIONS OF ACCOUNTING SECTION OF FINANCE DEPARTMENT The company maintains a clean and perfect Accounting system. The main activity of the Finance Department is Working Capital Management. Preparation of financial statements such as Balance Sheet, Profit & Loss Account etc is also the activities of the Finance Department. Secretarial works relating to Board comes under the review of this Department. Most of the activities carried out by the Finance Department pertaining to long-term and short-term requirement of the operation using Purchase Bill maintaining the accounts of contractors, sub-contractors, Income Tax deductions, salary, discrepancy, dealing with the financial institutions with imports and exports are also the functions of the Finance Department. ACCOUNTS DEPARTMENT GOALS: Profit maximization. Wealth maximization. MISSION: Line of business i.e. steels making. of

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This department plays a very important role in dealing with money related matters. The main objectives of this department to see the utilization of resources like men, machine and materials.

FUNCTIONS: It is the custodian of resources. It contains treasury functions which deals with money flow, it can

either be in flow or outflow. Outflow means of may be either coming from loans or capital or out flow or earning profit. Outflow may be either in the form of expense or purchase of assets. Book keeping: All accounts like cash, Bank, Sales regarding assets loans will be maintained by finance department. This book keeping consists of statutory. These statutory are governed by: 1. 2. 3. 4. AUDIT: - It Consists Of 1. 2. Internal Audit, which is for only department. External Audit, which include outside experts. Management information system Company law Sales Tax law Customers Act Income Tax

Co-ordination The closing of account is done on yearly basis. There will be yearly date i.e. on AprilMarch, which is considered as financial year. The main responsibility of accounts department is to arrange the funds time to time.At the end of accounting period they prepare profit and loss account, balance sheet. Then the final account is submitted to share holders. After that the auditors do the final auditing

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FINANCIAL DEPARTMENT It is a unit band accounting where the raw materials are bought from Hospet Steels Ltd. Accounts are totally independent. Company maintains its own accounts. Then comes funding. It is based on cost basis. It is not profit center, it is cost center. The functions of this dependent is to maintain accounts of this unit, co-ordinating of head office and the unit for funds see that production is on. RESPONSIBILITIES: To ensure that the accounts are maintained properly and costing is calculated using computerization technique. Deviations of cots are highlighted to management and effective utilization of the funds. Up to date costing of the iron making, steel making and rolling operation to be maintained. Any decision regarding the financial requirements is taken jointly between the site and corporate office. It is taken in a formalized means. COMMERCIAL DEPARTMENT Department Policy: To get materials in right time at minimum cost. Commercial department is a service dept. to various dept. This dept. provides raw materials, input spares of equipment, miscellanies consumables, and whatever required by

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the company. This dept. does purchases, then stores it, keeps it in proper manner, issues them and also they note the consumption and based on this they make the budgets. It is quite natural, that every company purchases raw materials in large quantity for producing the goods. In this case, of the raw materials become excess then this dept. plays a very important role in disposing off the materials to the corporate companies then these companies will make use of these raw materials. Responsibilities: The responsibilities of this dept. are as follows. For making subcontracts of the company. To look after transportation, particularly the trucks for taking out and bring in the materials. Purchasing the right materials from right source at right time and at right price. In case of the raw materials are purchased at high price. It is backed up by the quotations. There for they purchase the raw materials which cots them low and yields them with good quality and over all must be economical. This dept. is one which is very much exposed both outside an inside. This department is considered as the eyes and ears of the company. The persons in this dept. should be receptive and smart. They should be totally a ware of what is happening in the outside world. They should also be in touch with user department and safeguard lot of controls, review pending items, purchase lot of controls, review pending items purchase orders and payments. This dept. is very stressed and vulnerable working area. The persons working in his department should be enthusiastic strong in character and should be strict on procedures. SAFETY DEPARTMENT; This department is further divided into:

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Health department Environment department Fire department. Doctor & all medical facility is provided at HSL. FUNCTION 1. To follow general safety rules. 2. To conduct safety induction training after medical test of an employee. 3. To provide protective equipments. Safety equipment provided at HSL Safety shoes Helmets Goggles Dust mask Ear plug & ear muffs. Chemical & heat protection

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SWOT ANALYSIS STRENGTHS: Commissioning the iron plants has reduced on scrap. Non-existence of labors union. HSL has its reach through out south India. Very close proximity of iron ore depositions Self power generation Easy availability of raw materials. WEAKNESS: Due to Less source of funds the diversification capacity at four division of the plant are not fully utilized. Not able to get grants from various financial institution..

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The company is entirely is depends on external transpiration like truck operators, because of these depends on external conveniences they have to sometimes suffer loss.

OPPORTUNITIES: The increasing demand from the major Iron & Steel industries from India and all over the world. Globlisation of Indian Economy bound to increase demand levels. Major automobile units have come up in South India like Toyoto, Volvo etc.. Steel Industries such as Jindal, Kirloskar have come up in Bellary region from which demand for steel will increase. Self power generator and effective utilization of power leads to lower cost of production. THREATS : a) Attrition rate is high. b) Price hike in raw materials. c) Competition from the new entrants in the region

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VISION The Company shall strive to be the Best Quality and Lowest Cost Special Steels Producer to the Delight of Customers and Stakeholders. MISSION The organization shall dedicate its efforts to involve all its employees towards achieving:

Highest standards in quality Highest productivity at lowest costs Reduction of losses & Zero Accidents.

VALUES At Hospet Steels, we cherish the following values :


Concern for Environment Respect for dignity and potential of all the employees 58

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Aim for excellence in every area Transparency in every operation Continued emphasis on Training and Development Hard work coupled with best rewards Better Work Culture through better people orientation High emphasis on Technology and Communication.

VISION, MISSION & QUALITY POLICY STATEMENTS VISION: Hospet Steeels Ltd to be a world class producers of Iron based value added Products. MISSION: 1. We are committed to improve manufacturing processes and products On continual basis through effective quality management systems For achieving customer satisfaction . 2. We are committed to implement TPM methodology in the steel manufacturing process through systematic approach and employee participating for achieving organizational goal. 3. We are committed to comply with Legal, Economic & Moral obligation towards Safety & Health of organizational goals employees through safe working practices for achieving

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HOSPET STEELS LIMITED GINIGERA.KOPPAL


BETTER STEELS THROUGH BETTER TECHNOLGY

QUALITY OBJECTIVES Customer driven, continuous improvement. Encouraging innovation and technology updating. Training and empowering the wok force. Caring for requirement of the society. Compliance with documented quality system. VALUES At Hospet Steels, we cherish the following values; Concern for environment Aspect for dignity and potential of all the employees. Aim for excellence in every area. Transparency in every operation. Continued emphasis training and development. Hard work coupled with best rewards. Better work culture through better people orientation. High emphasis on technology and communication. APPROVALS:

CERTIFICATIONS
ISO 9001-2000 ISO 14001-2004

Certification BY BVQI Certification BY BVQI 60

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HOSPET STEELS LIMITED GINIGERA.KOPPAL


BETTER STEELS THROUGH BETTER TECHNOLGY

TS16949 TPM 5 S TPM

Certification BY BVQI Kicked off TPM- Pre-Audit By JIPM, Japan Launched on Implementation targeted by Certified By JIPM, Japan

SOURCE OF RAW MATERIALS: 1) Iron ore 2) Coke 3) Fluxes 4) Lime stone 5) Dolomite 6) Manganese PRODUCTS: Grades (As per Indian & various International Standards): Ball bearing steels Spring steels Carbon and Alloy constructional Steels. Any other special grades of steel as per customers requirements. COMMUNITY DEVELOPMENT SOCIAL ACTIVITIES 1. Hospet Steels is supporting five schools in Ginigera and Kanakapura villages by way of furniture, fixtures, sports goods, etc., every year on 15th August. Cash prizes and trophies Hospet Bagalkot Sondur mines

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HOSPET STEELS LIMITED GINIGERA.KOPPAL


BETTER STEELS THROUGH BETTER TECHNOLGY

are given to the 1st and 2nd rank holding boy & girl in middle school as well as high school final examination. Trophies are also given to the best sportsman of the school. 2. Eye camp was conducted at Ginigera along with Rotary Club of Hospet in which 774 elderly men & women of the neighbouring villages got their eyes tested. 74 patients were operated and 240 were given spectacles free of cost. 3. Street lamps worth of Rs.1.75 lakhs were provided in the neighbouring villages. 4.Rs.2.5 lakhs was donated for the land to build Primary Health Centre at Ginigera. 5. Hospet Steels had sponsored five students of land sellers for ITI course after which they were offered jobs in the company. 6. About 108 land sellers of Kanakapura, Ginigera, Hale Kanakapura, Hosahalli, etc., were given jobs in the company apart from the compensation paid for the land. 7. Sadguru Sri Sri Ravishankar Swamiji Maha Satsang was organised at Hospet. People around Hospet, Torangallu, Koppal attended the Maha Satsang programme in which they were exposed to The Art of Living, Meditation and the blessings of the Guruji. . Company Doctor is available three days in a week at the Community centre for two hours for free check up and consultation for the residents of neighbouring villages. 9. Company has sponsored for the renovation of the Basket ball court at the Vijayanagar College Ground at Hospet. 10. The company holds cricket tournament every year in which fifteen teams participate from Hospet, Bellary, Koppal, Gadag and Hubli regions. 11. To improve the environment inside the factory premises, the company has planted more than 25,000 trees of different species which is already making a positive impact to create the green belt in the neighbourhood.

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BETTER STEELS THROUGH BETTER TECHNOLGY

12. Constructed class rooms for Ginigera High School and Hosa Kanakapura primary school at a cost of Rs. 9 Lakhs. We have also constructed compound wall for Primary school at Hosa Kanakapur and Kanakapur Tanda at a cost of Rs. 3 Lakhs. 13. The company has been providing drinking water from its borewells to the neighboring villages whenever required. 14. The company has undertaken the task of providing street lights in Jawahar Road, Koppal at a cost of Rs. 15 Lakhs. 15. The company has provided Desk to High School in Ginigera village at the cost of Rs.1 Lakh. 16. In support of Renovation of building proposed for establishment of KENDRIYA VIDYALAYA at KOPPAL, Hospet Steel hascontributed Rs.5.5 Lakhs . 17. Hospet Steel has privided the water fecility for the nearby village GINIGERA by DIGGING BOREWELL & LAYING THE PIPELINE by investing Rs. 60,000/18. Rs.2.5 Lakhs is spent on Basketball Ground at District Administrative office Koppal. 19. Planned to conduct EYE CAMP which includes FREE SPECTACLES and OPERATION on 25th March,2007 by spending around Rs.2.5 to Rs.3 lakhs 20. Rs.2.5 Lakhs is spent on Basketball Ground at District Administrative office Koppal. 21.Planned to conduct EYE CAMP which includes FREE SPECTACLES and OPERATION on 25th March,2007 by spending around Rs.2.5 to Rs.3 lakhs M/s Hospet Steels Limited won the SURAKSHA PURASKARA of National Safety Council, Bangalore in 2007

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HOSPET STEELS LIMITED GINIGERA.KOPPAL


BETTER STEELS THROUGH BETTER TECHNOLGY

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HOSPET STEELS LIMITED GINIGERA.KOPPAL


BETTER STEELS THROUGH BETTER TECHNOLGY

HOSPET STEELS TEAM M/s Hospet Steels Limited Plant is Headed by

Sri R. Sampath Kumar, (Chief Executive) 1 2 3 4 5 6 Sri R. Sampath Kumar Sri K.C. Siddappa Sri Partho Moulik Sri N.J. Parikh Sri Sailesh B. Burde Sri Prakash V katti Chief Executive Chief Operating Officer Executive Vice-President RMS Vice-President - SMS Sr. General Manager - Maintanance Sr.General Manager- HRD & Admin

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HOSPET STEELS LIMITED GINIGERA.KOPPAL


BETTER STEELS THROUGH BETTER TECHNOLGY

7 8 9

Sri M.G. Sarvanam Sri C.P. Agnihotri Sri D Vamanrao

General Manager - Mines General Manager - Commercial General Manager - Bulk Purchase General Manager - Commercial General Manager - Finance General Manager - Electricals General Manager - Maintanance General Manager - QAD General Manager - SMS General Manager - MBF Asst.General Manager-MIS

10 Sri K Santhanam 11 Sri L Bhaskar 12 Sri D S Subbarao 13 Sri Gopalkrishna 14 Sri Sanjay Mehta 15 Sri O P Singh 16 Sri S Srinivas 17 Sri Muralidhar R Harihar

QUALITY ASSURANCE DEPARTMENT


Quality Policy: We are committed to improve manufacturing processes and products on continual basis through effective quality management systems for achieving customer satisfaction.

BALANCE SHEET As at 31st march, 2008 As at 31st march, 2007

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HOSPET STEELS LIMITED GINIGERA.KOPPAL


BETTER STEELS THROUGH BETTER TECHNOLGY PARTICULARS SOURCES OF FUNDS 1. Shares holders Funds AMOUNT AMOUNT AMOUNT

a) Share capital b) Reserves & surplus


2. Loan Funds:

436,909,667 4,687,742,207 5,124,651,874

436,909,667 4,102,948,726 4,539,858,393

a) Secured loans b) Unsecured loans


3. Deferred Tax Adjustment Deferred Tax Liabilities Deferred Tax Assets TOTAL APPLICATIONS OF FUNDS 1. Fixed Assets :

2,164,130,672 86,620,311 2,250,750,983 468,302,528 4,201,332

721,048,819 90,877,478 811,926,297 440,975,369 1,998,209 464,101,196 438,977,160 7,839,504,053 5,790,761,850

a) Gross Block b) Less: dep etc c) Net Block d) Capital Work-in-progress

3,964,554,208 1,369,201,278 2,595,352,930 257,656,439 2,853,009,36

2,962,852,551 1,176,062,701 1,786,789,850 469,612,594 2,256,402,444 1,931,227,473

2. Investments
3. Current, Assets, Loans and Advances

2,287,359,592

a) Investments b) Sundry debtors

1,583,246,455 2,104,790,007

916,268,900 1,592,440,033

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HOSPET STEELS LIMITED GINIGERA.KOPPAL


BETTER STEELS THROUGH BETTER TECHNOLGY

c) Cash and bank bal d) Other current assets e) Loans and Advances

33,309,182 168,473,505 2,215,910,128 6,105,729,277

47,545,634 96,376,075 2,304,153,822 4,956,784,464

Less: current liabilities and provisions

a) Liabilities b) Provisions

2,458,697,366 948,076,819 3,406,774,185

2,639,021,649 714,630,882 3,353,652,531 2,698,955,092 1,603,131,933 5,790,761,850

Net current Assets TOTAL

7,839,504,053

PROFIT ANS LOSS ACCOUNT As at 31st March,2008 Particular INCOME: Sales, Gross Less: excise duty Net sales Income from power generation Operating Income Other income EXPENDITURE: Materials consumed and manufacturing expenses Employees emoluments Other expenses Interest Depreciation & write office etc.. 11,556,981,585 2,219,545,520 9,337,436,065 304,108,721 176,805,749 9,818,350,535 114,306,793 9,932,657,328 10,700,121,147 2,017,408,538 8,682,712,609 336,806,926 74,157,194 9,093,676,729 120,967,643 9,214,644,372 Amount Amount As at 31st March,2007 Amount

7,518,012,506 255,806,957 728,776,002 185,583,571 194,163,181 8,882,342,217

6,716,781,440 214,342,949 684,192,662 169,283,993 178,498,385 7,963,099,429

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HOSPET STEELS LIMITED GINIGERA.KOPPAL


BETTER STEELS THROUGH BETTER TECHNOLGY 1,050,315,111 Profit for the year, before taxation for taxation: tax (including wealth taxRs-3,00,000/year Rs.3,00,000/-) 224,950,000 26,886,835 6,000,000 2,000,000 1,251,544,943

Provision Current Previous 373,100,000 Deferred tax (22,381,000) Fringe benefit tax 257,836,835 792,478,276 352,719,000 898,825,943 1,049,540,074 -------- Less: 404,530 1,947,961,487 11,600,000 1,959,561,487 2,265,639,951 140,000,000 94,168

Profit after taxation As per last account Adjustments in respect of previous year Add: Excess provision for taxation expenses transferred from debenture redemption reserve Amount available for appropriation: Transfer to General Reserve Transferred to Reserve fund in terms of section 451C of Reserve Bank of India Transferred to capital Redemption Reserve ---------Proposed dividend on Equity shares 174,612,240 Tax on Dividend

1,615,273,897 26,222 -------2,407,778,395 8,500,000 2,416,278,395 2,805,713,122 100,000,000 22,498,136 12,000,000 174,621,240 29,675,350 204,287,590 2,466,927,396 22.49

Balance carried to Balance Sheet Earnings per Share(Refer Note No.9) (Face Value of Rs.10/-) Basic and diluted 20.07 Notes forming part of the consolidated financial statement 21

29,675,350 204,287,590 1,921,258,193

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HOSPET STEELS LIMITED GINIGERA.KOPPAL


BETTER STEELS THROUGH BETTER TECHNOLGY

M.L HSL C.E.O

KSL

Mr. Suketu V. Shah, Jt. M.D, ML. Mr. C,G Patankar, Executive Director, KSL Mr. Sampathkumar, C.E.O Mr. K.C Siddappa, C.O.O and Executive Vice President, Vice President, Senior General Managers, General Managers, Deputy General Managers and Assistant General Managers.

Ex.V.P Sr.GM GM DG M AGM

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