AN ECONOMIC STUDY OF SALEM STEEL AUTHORITY OF INDIA LIMITED

K.SARAVANAN* Abstract Steel Authority of India Limited (SAIL) (NSE: SAIL, LSE: SAUD) is one of the largest state-owned steel-making company based in New Delhi, India and one of the top steel makers in World. With a turnover of INR48,681 crore (US$9.2 billion), the company is among the top five highest profit earning corporates of the country. It is a public sector undertaking which trades publicly in the market is largely owned by Government of India and acts like an operating company. Incorporated on January 24, 1973, SAIL has more than 1 lakh employees. During 2010-11, the manpower of SAIL reached a level of 110794 (as on 31.3.2011) from 116950 (as on 1.4.2010) Major plants owned by SAIL are located at Bhilai, Bokaro, Durgapur, Rourkela, Burnpur (near Asansol) and Salem.SAIL is investing Rs 21000 crore in West Bengal, to set up a wagon factory. SAIL is a public sector company, owned and operated by the Government of India. According to a recent survey, SAIL is one of India's fastest growing Public Sector Units.Besides, it has R&D centre for Iron & Steel (RDCIS), Centre for Engineering and Technology (CET), Management Training Institute (MTI) and SAIL Safety Organization (SSO) located at Ranchi capital of Jharkhand. SAIL traces its origin to the Hindustan Steel Limited (HSL) which was set up on January 19, 1954. HSL was initially designed to manage only one plant that was coming up at Rourkela.For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956, and ultimately to Ranchi in December 1959. Guest Lecturer, PG Department of Commerce, Arulmigu Palaniandavar College of Arts & Culture, Palani.

AN ECONOMIC STUDY OF SALEM STEEL AUTHORITY OF INDIA LIMITED

INTRODUCTION A new steel company, Bokaro Steel Limited (Bokaro Steel Plant), was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from 1.58 MT (195960) to 1.6 MT. The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.[citation needed. Rourkela Steel Plant (RSP) in Orissa set up with German collaboration (The first integrated steel plant in the Public Sector in India, 1959) Bhilai Steel Plant (BSP) in Chhattisgarh set up with Soviet collaboration (1959). Durgapur Steel Plant (DSP) at Durgapur, West Bengal set up with British collaboration (1965) Bokaro Steel Plant (BSL) in Jharkhand (1965) set up with Soviet collaboration (The Plant is hailed as the countrys first Swadeshi steel plant, built with maximum indigenous content in terms of equipment, material and know-how) IISCO Steel Plant (ISP) at Burnpur, West Bengal.

Special Steel Plants

Steel Authority of India Limited (SAIL), Kanpur, Uttar Pradesh Alloy Steels Plants (ASP), Durgapur, West Bengal Salem Steel Plant (SSP), Tamil Nadu Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi, Karnataka Ferro Alloy Plan Chandrapur Ferro Alloy Plant (CFP) in Maharashtra
Central Units

Centre for Engineering and Technology Research and development centre for iron and steel Management Training Institute SAIL safety organization Raw materials division Central Marketing Organization SAIL consultancy organization

NTPC SAIL Power Company Limited (NSPCL) A 50:50 joint venture between Steel Authority of India Ltd. (SAIL) and National Thermal Power Corporation Ltd. (NTPC Ltd.); manages the captive power plants at Rourkela, Durgapur and Bhilai with a combined capacity of 314 megawatts (MW). It has installed additional capacity by implementation of 500 MW (2 x 250 MW Units) power plant at Bhilai. The commercial generation of 1st Unit has commenced in April2009 and the 2nd Unit in October 2009

Bokaro Power Supply Company Pvt. Limited (BPSCL) This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in January 2002 is managing the 302-MW power generating station and 660 tonnes per hour steam generation facilities at Bokaro Steel Plant. BPSCL has proposed to expand its capacity by installing 2x250 MW coal based thermal unit at Bokaro. In addition, construction activities are underway for installation of 9th Boiler (300T/Hr) & 36 MW Back Pressure Turbo Generator (BPTG) project at Bokaro. Mjunction Services Limited Mjunction services limited operating in Information Technology and the Internet, is a 50:50 venture promoted by SAIL and TATA Steel. Founded in February 2001, it is today not only India's largest eCommerce company (having eTransacted worth over Rs.90,000 crores till date) but also runs the world's largest eMarketplace for steel.m Business volume of the company in terms of Transaction Value has soared from Rs 94.35 crores in FY'02 to Rs 24,854 crores in FY'11, registering a spectacular CAGR of 86%. mjunction's growth has not only been in terms of transactional value, revenue and profits. In the space of just 10 years, it has established offices at 12 locations across the country. SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to promote a service centre at Bokaro with the objective of adding value to steel. Bhilai JP Cement Ltd SAIL has incorporated a joint venture company with M/s Jaiprakash Associates Ltd to set up a 2.2 MT slag based cement plant at Bhilai. The company shall commence cement production at Bhilai by March'2010, whereas clinker production at Satna shall start within 2009.

Bokaro JP Cement Ltd SAIL has incorporated another joint venture company with M/s JaiPrakash Associates Ltd to set up a 2.1 MT cement plant at Bokaro utilizing slag from BSL. The project implementation is under progress with commencement of cement production likely by July2011. SAIL&MOIL Ferro Alloys (Pvt.) Limited SAIL has incorporated a joint venture company with Manganese Ore (India) Ltd on 50:50 basis to produce ferro-manganese and silico-manganese required for production of steel.. S&T Mining Company Pvt. Ltd SAIL has incorporated a joint venture company with TATA Steel for joint acquisition & development of coal blocks/mines. New indigenous opportunities for coking coal development are being explored by the Joint Venture company for securing coking coal supplies. International Coal Ventures Private Limited Towards achieving the target of making steel PSUs self reliant in the area of coking coal, a joint venture company has been incorporated composed of five central PSU companies i.e. SAIL, Rashtriya Ispat Nigam Limited (RINL), Coal India Limited and other target countries. Ownership and Management The Government of India owns about 86% of SAIL's equity and retains voting control of the Company. However, SAIL, by virtue of its Maharatna status, enjoys significant operational and financial autonomy.

Achievements Quality Summit New York Gold Trophy 2007 (International Award for Excellence & Business Prestige) and Award of Excellence Maintenance for Sumitomo Heavy Industry & TSUBKIMOTO-KOGIO, Japan won by Alloy Steel Plant, Durgapur. Conclusion SAIL, is in the process of modernizing and expanding its production units, raw material resources and other facilities to maintain its dominant position in the Indian steel market. The aim is to increase the production capacity from the base level production of 14.6 MTPA to 26.2 MTPA of Hot Metal. SAIL has received the prestigious Golden Peacock Environment Management Award for the year 2011. The 15 out of 28 awards won by SAIL went to our 74 employees for the performance year 2008. Bhilai Steel Plant won 7 such awards involving 36 employees, Bokaro Steel Plant won 6 awards involving 29 employees. Durgapur Steel Plant and Salem Steel Plant both won 1 award each involving five and four employees respectively. SAIL employees have bagged 4 out of 5 awards of Class A, which is the highest number of A Class awards won by any PSU in India. References Steel Authority of India - Corporate Office Report. sail.co.in. Retrieved 2012-05-29. Consolidated Result bseindia.com. Retrieved 2012-05-29. SAIL to invest Rs 21,000 crore in West Bengal The Times Of India. Retrieved 25 May 2012. Steel Authority of India SAIL. Retrieved 2010-08-23. mjunction - About Us". mjunction.in. Retrieved 2012-05-29. SAIL-led consortium to invest $75mn on Afghan mines in Phase-I". The Times Of India. 07-082012.