A Mini Project Report On Organisational Operation and Financial Management OF Visvesvaraya Iron and Steel Plant (Sail-Visp Bhadravathi)

A MINI PROJECT REPORT ON
ORGANISATIONAL OPERATION AND FINANCIAL

MANAGEMENT
OF
VISVESVARAYA IRON AND STEEL PLANT
(SAIL-VISP BHADRAVATHI)
Organizational Operation And Financial Management Of VISP

CONTENTS
Chapter-1
 Introduction……………………………………………….…….….. 05
 Objectives……………………………………………….…..………. 14
 Research methodology…………………………………..……. 14
 Limitations of the study…………………………………..…... 15
Chapter-2
 Organization profile……………………………………………… 17
 Awards of the company…………………………………….…. 20
 Organization structure…………………………………………. 21
 Departments………………………………………………………… 22
Chapter-3
 Points collected during the visit……………………………. 24
 Production process…………………………………………….…. 24
 Finance department……………………………………………… 28
Chapter-4
 SWOT analysis…………………………………………………….. 37
 Findings ……………………………………………………………… 39
 Conclusion…………………………………………………........... 40
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 Suggestions…………………………………………………………. 41
Chapter-5
 List of reference……………………………………………........ 44
 Bibliography………………………………………………………… 44
Chapter-1
Introduction
Objectives
Research methodology
Limitations of the study
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Introduction:
The history of steel making in India can be traced back to 400 BC when the
Greek emperors used recruit Indian archers for their army who used arrows
tipped with steel. Many more evidences are there of Indians perfect knowledge of
steel-making long before the advent of Christ. Archeological finds in Mesopotamia
and Egypt testify to the fact that of iron and steel was known to mankind for
more than six thousand years and that some of the best products were made in
India. Among the widely - known relics is the iron pillar near Qutb Minar in Delhi.
The pillar, built between 350 and 380 AD, did not rust so far an engineering
marvel that baffles the scientist even today. Yet another engineering feat is the
famous sun temple at konark in Orissa, built around 1200AD, where steel
structural were used for the first time in the world.
These were the halcyon days when India flourished in all direction and when
its prosperity was a matter of envy for the foreigners. But as ill luck would have it.
India’s prosperity gave way to poverty after the advent of the foreign rule. India’s
indigenous industry languished because of a deliberate policy of the colonial
rulers to make country only a supplier of raw materials.
Steel Role plays a vital role on the development of any modern economy. The
per capita consumption of steel is generally accepted as yardstick to measure the
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level of social-economic development and living standards of the people. As such,

no developing country can afford to ignore the steel industry.
GROWTH AND DEVELOPMENT:
 Indians known for art of smelting iron in early times e.g. Mehrauli Pillar. But
first I&S unit on modern lines was set up in 1830 at Porto-Nova (T.N) - not
succeeded.
 Other attempts in second half of 19th century – same fate.
 Real beginning in 1907 with setting up of TISCO Plant at Sakchi (now
Jamshedpur)
 1919 – IISCO (Indian Iron and Steel Company) set up at Burnpur
 1923 – Mysore Steel Works set up at Bhadravati. Now called Vishvesvaraya
Iron and Steel Works (VISW)
Rapid growth after independence:
 The development of I&S industry was envisaged during first Five Year Plan
(FYP), but it was during Second FYP that three integrated steel projects were
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started at Bhilai (with erstwhile USSR’s Technical and Financial support),

Rourkela (with Germany’s assistance) and Durgapur (with U.K’s assistance)
 During Third FYP, Bokaro Steel Plant was started (Production started in 1972).
 Three more steel plants planned during IV FYP to meet the requirement of
steel.
1. Salem (T.N.)
2. Vizag (A.P.)
3. Vijayanagar (Hospet district in Karnataka)
 Coming up of SAIL in 1973 provided an umbrella corporation for managing
plants in public sector.
Slow Growth (1950-60)
o New PSUs had yet to start production

o Low capital availability
o Low installed capacity
o Low Demand for the finished products
Exponential growth (1960 – mid 90s)
o Started with coming up of Bhilai, Durgapur and Rourkela Plants

o Expansion of existing plants
o Industrialization took place at a faster rate, therefore higher demand for
steel
o Increased per capita consumption
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Plateau Section (Stagnation) (Mid 90s – 2001)
o After liberalization, tertiary sector started becoming more important

o Losses of PSUs mounted high pressure on the plants themselves
o Competition from abroad.
Impact of Liberalization:
o After decades of state orchestrated industrial development, the
government going by the experience world over decided to launch the
process of liberalization and the steel sector was also opened to
international market and associated competition.
o With the start of new millennium, increase in production because of
infrastructure development and exports. Annual GR of Production 2001-02
– 3.7% and 2002-03 – 8%.
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Steel Authority of India Limited:
Steel Authority of India Limited (SAIL) is one of the largest state-owned

steel makers in India. With a turnover of Rs. 48,681 crore, 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 wholly owned by Government
of India and acts like an operating company. Incorporated on January 24, 1973,
SAIL has more than 131,910 employees. The company's current chairman is C.S
Verma. With an annual production of 13.5 million metric tons, SAIL is the 16th
largest steel producer in the world.
Major plants owned by SAIL are located at Bhilai, Bokaro, Durgapur,

Rourkela, Burnpur (near Asansol) and Salem. 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.
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Major Units:
SAIL Integrated Steel Plants

1. Rourkela Steel Plant (RSP) in Orissa set up with German collaboration
(The first integrated steel plant in the Public Sector in India, 1959)
2. Bhilai Steel Plant (BSP) in Chhattisgarh set up with Soviet collaboration
(1959)
3. Durgapur Steel Plant (DSP) at Durgapur, West Bengal set up with British
collaboration (1965)
4. Bokaro Steel Plant (BSL) in Jharkhand (1965) set up with Soviet
collaboration (The Plant is hailed as the country’s first Swadeshi steel plant,
built with maximum indigenous content in terms of equipment, material
and know-how)
5. IISCO Steel Plant (ISP) at Burnpur, West Bengal
Special Steel Plants

1. Steel Authority of India Limited (SAIL), Kanpur, Uttar Pradesh
2. Alloy Steels Plants (ASP), Durgapur, West Bengal
3. Salem Steel Plant (SSP), Tamil Nadu
4. Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi, Karnataka
Subsidiaries
1. Maharashtra Elektro-smelt Limited (MEL) in Maharashtra
Central Units
1. Centre for Engineering and Technology

2. Research and development centre for iron and steel
3. Management Training Institute
4. SAIL safety organization
5. Raw materials division
6. Central Marketing Organization
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7. SAIL consultancy organization[2]
Joint Ventures:
o NTPC SAIL Power Company Pvt. Ltd (NSPCL)
o Bokaro Power Supply Company Pvt. Limited (BPSCL)
o Mjunction Services Limited
o SAIL-Bansal Service Center Ltd
o Bhilai JP Cement Ltd
o Bokaro JP Cement Ltd

o SAIL&MOIL Ferro Alloys (Pvt.) Limited
o S&T Mining Company Pvt. Ltd
o International Coal Ventures Private Limited
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:
 SAIL was featured in the 2008 list of Forbes Global 2000 companies at
position 647 [3].
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 National Institute of Personnel Management conferred the National Award

on SAIL for Best
HR Practices 2008.
 SAIL was adjudged as the top Indian company under the Iron and Steel
Sector for the Dun &
Bradstreet – Rolta Corporate Awards 2008.
 Golden Peacock Award for Combating Climate Change – 2008 for BSP,
Occupational
Health and Safety – 2008 for BSL.
Other major steel producers
 Aichi Steel Corporation, Japan

 Allegheny Technologies, United States
 Angang Steel Company Limited, China
 Tuwairqi Steel Mills Limited, Karachi[citation needed], Pakistan
 AK Steel, formerly Armco, Middletown, Ohio
 BlueScope Steel, primarily in Australia
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 China Metallurgical Group Corporation, China

 Commercial Metals Company, United States
 Companhia Siderúrgica Nacional, Brazil
 Dongkuk Steel in Seoul, South Korea
 Electrotherm India Ltd, in Gujarat, India
 Essar Steel, India
 Erdemir in Karadeniz Ereğli, Turkey
 Beshay Steel, Egypt
 EZDK, Egypt
 Georgsmarienhütte GmbH, Germany
 Gruppo Lucchini, Italy
 Habas, Turkey
 Hadeed, Saudia Arabia
 Ilyich Mariupol steel and iron works, Ukraine
 Japan Steel Works, Japan
 Jindal Steel, India
 JSW Steel[citation needed], India
 Kobe Steel, Japan
 KVS Ispat[citation needed], India
 Libyan Iron and Steel Company, Libya
 Mechel, Russia
 Metalloinvest, Russia
 Mitsui & Co., Japan
 Nedstaal, Netherlands
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 Nisshin, Japan
 Olympic Steel, United States
 Outokumpu, based in Finland
 Ovako[citation needed], Sweden & Finland
 Pakistan Steel Mills Pakistan
 Panzhihua, China
 Rautaruukki, Finland
 Reliance Steel & Aluminum Co., United States
 Salzgitter AG, Germany
 Schnitzer Steel Industries, United States
 SCM Holdings (divisions of), Ukraine
 Sheffield Forgemasters[citation needed] in Sheffield, England
 Sidetur, Venezuela
 SSAB, Sweden
 Steel Dynamics, United States
 Ternium -- Hylsa in Mexico, Siderar in Argentina, & Sidor in Venezuela
 Usiminas, Brazil
 Vizag Steel, India
 Voestalpine, Austria
 Sahaviriya Steel Industries, Thailand
 Bhushan Steel Limited, India
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Objectives:
1. To know practically the organizational operation and the strategies used.
2. To study about the finance department and its process.
3. To know the strength, weakness, opportunities, and threat of the

organization.
4. To study of balance sheet formation.
5. Profit and loss account calculation by considering different factors.
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Research methodology:
In order to carry out the project I have to collect information regarding

the project work concept to collect the data I am using two methods they
are
1. Primary method
2. Secondary method
Primary method:
Primary method can be of different types but I am using interview
and discussion method. In this method I had conducted interviews &
discussion with executives and non executives of the organization to collect
the relevant data which are necessary to this project.
From primary method I have got the information regarding
1. Operating process
2. About the different departments and their function
3. Technology used
4. Overall performance of the organization
5. Financial operation of the organization
Secondary method:
The secondary data are collected from
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1. Sail website
2. From account books
3. VISP magazines
Limitation of the organization study:
There are some limitation faced during the project
1. VISP is one of the big industry to study about it we require a lot of time
2. The technical terms used are difficult to understand.
Chapter-2
Organization profile
Awards of the company
Organization structure
Departments
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Organization profile:
The iron works were started by Nalvadi krishnaraja wodeyar, the king of
Mysore, under the guidance of his diwan, sir.M.Visvesvaraya. In the year 1915 -
1916. It was first started in the name the Mysore iron and steel works. In 1962
the name was changed to Visvesvaraya iron and steel limited and the factory was
converted into a government company jointly owned by the govt of India and
govt of Karnataka. In 1989, it was taken over by the steel authority of India as a
subsidiary entity and in 1998, VISL was merged into sail. The years 1918-1922
were spent in setting up the factory.
To start with, a wood distillation plant for manufacturing charcoal and blast
furnace for melting iron were setup in the factory in 1923 with a capacity of 60
tones of pig iron per day.
 High grade Hematite iron ore from Kemmangundi Mines in Chikmaglur

district (Karnataka): 40 km away
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 Coal not available in vicinity; earlier used locally available charcoal, but now
HEP from Sharavati Power Project.
 Bhadra (vati) River passes through it. Water easily available. Also its valley
13 km wide providing enough land for expanding activities.
 Well connected to Mangalore Port.
 NH4 (part of Golden Quadrilateral) passes near to it. Well connected by
transport linkages. Lies on Biru - Shimoga railway line.
 Engaged in producing steel for Defense purposes.
Milestones of VISP:
1918: construction work started for setting up a wood distillation plant of 200
tons per day one charcoal blast furnace of 60 tons per day.
1923: mining of iron ore in kemmanagundi iron ore mines, a captive mine of the
company.
1938: cement plant started.
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1976: name of the company changed to Visvesvaraya iron and steel Ltd., (VISL) on
Feb. 16, 1976.
1989: VISL was taken over by SAIL as subsidiary company.
1998: VISL was merged with the SAIL on 28th DEC 1998.
Quality policy:
Quality policy of VISL is as below
 Providing products and services that meet or exceed customer’s
expectations.
 Continual improvement to our quality management system and processes.
 Fostering the professional development of our employees.
Area of operation:
The Visvesvaraya iron and steel plant operates only in India. Marketing is
managed through branch offices located at Bangalore, Pune, Chennai,
Ahmadabad, Mumbai, Nagpur and Kolkata. Head office is located at Bhadravathi,
India.
Nature of business carried:
Visvesvaraya iron and steel plant is the manufacturer of iron and steel
mainly alloys special steel produced in the country.
Ownership pattern:
When, Indian govt decided to enter in the field of iron and steel production.
It is decided broadly not to run the firm as departmental undertaking. Although
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initially, the steel project administration was directly under the ministry of central
govt, Hindustan steel was formed as a private limited company in 1954.
The committee of public under taking reviewed the question of setting up a
holding company for steel as a public sector which contribute surplus in the
economy. Based on these consideration Steel Authority of India Limited was
approved by the government in December 1972 with an authorized capital of
Rs.2000crores, in 1978 SAIL was restructured as an operating company.
In India, there is a large potential to expand the steel market, which is

currently amongst the lowest per capital consumption an areas of the world. This
revolution is being spearheaded by SAIL, the company’s largest and the world’s
13th largest steel producer with a production with of 12 million tons of crude
steel.
At present govt of India has 86% of ownership of SAIL, the co owns and
operates nine manufacturing plant including two subsidiary co’s.
Awards of the company:
 1988: National Safety Award.

 2004: National Award
 2004: Best Safety Man Award
 2005: Safety Man of the Year Award.
 2007: Sail Safety Award
 2009: ISPATH Suraksha Award For Mine & Plant
 2009: Vishwakarma Rasthriya Puraskar
 2009: The Golden Peacock Occupational Health Safety Award
 2009: Green Tech Safety Gold Award
 2009: Jawaharlal Award
 2009: Special Award for Revamping Auto Cutter Carriage Drive System In
CCM & SMS.
 2009: Mines Safety Award
 2010: Mines Environment & Mineral Conservation Award.
 2010: B.A. Narayana Murthy Award
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Organization structure of VISP:
Executive
director
AGM TECH
GM WORKS GM GM GM DGM-I/C DGM AGM PUBLIC

MARKETING PROJECTS OPERATION F&A IA RELATION
MGR ASST GM ASST GM ASST GM AGM-I/C AGM EMPLOYEES

CO-ORDN PROJECT OPERATION F&A IA
S
EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES
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Departments:
VISP consists of different departments for the smooth operating process.

The main departments are,
 Raw material section

 Blast furnace department
 Steel making shop department
 Primary mill department
 Bar mill department
 Finishing shop department
 Heat treatment shop department
 Forge plant department
 Machine shop department
 Oxygen plant department
These are some of the operating or production departments
 Purchase department
 Finance department
 Production planning commission department
 Plant control department
 Marketing department
These are some of the administrative departments
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Chapter-3
Points collected during the visit
Production process
Finance department
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Points collected during the visit:
1. Raw material department:

The main process of this department is to maintain the raw material and
passing the required materials to the concerned department.
The main raw materials are:
 Iron ore Main components

 Coke
 Raw dolomite
 Limestone
 River sand
 Sea sand
 Manganese Attitudes
 Donate
 Red earth
 Burnt lime
 Iron and Steel industry is a Weight Losing Industry (Material Index, M.I. >
1). All the raw materials of this industry – Coking Coal, Iron Ore, Limestone,
Dolamite, Mn are heavy and bulky
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 Location is governed by proximity to raw materials particularly coking coal

and Iron ore.
 Localization either near coal and Iron ore or in between.
 VISW is an exception, located far from main coal producing areas. Earlier it
used locally available charcoal and now using HEP from Sharavati Power
Project.
2. Blast furnace:
The purpose of a blast furnace is to chemically reduce and physically

convert iron oxides into liquid iron called "hot metal". The blast furnace is a huge,
steel stack lined with refractory brick, where iron ore, coke and limestone are
dumped into the top, and preheated air is blown into the bottom. The raw
materials require 6 to 8 hours to descend to the bottom of the furnace where
they become the final product of liquid slag and liquid iron. These liquid products
are drained from the furnace at regular intervals. The hot air that was blown into
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the bottom of the furnace ascends to the top in 6 to 8 seconds after going
through numerous chemical reactions
3. Steel making shop:
Molten iron is further refined at the Steel Melting Shop (SMS) to produce
steel, which is hard and malleable.
At DSP, there are 3 converters (Basic Oxygen Furnace) of 110-130 tonnes each.
The SMS also has a Vacuum Arc Degassing (VAD) unit for making special grades of
steel.
A major portion of the steel is routed through the Continuous Casting Plant.
Another major portion of the steel is taken to the teeming bay, where it is top
poured into 8 tonne ingot moulds for making ingot steel. A portion of highly
controlled steel is cast at the Special Casting Bay into fluted ingots and special
quality blooms. Fluted ingots are bottom poured and are used for making wheel
steel for DSP’s Wheel & Axle Plant. A portion of the liquid steel is also bottom
poured to make axle ingots.
4.Rolling Mills:
Ingots weighing 8 tonnes each are heated in the soaking pits (numbering 20)
for about 7 to 12 hours at around 1, 200 degrees centigrade and thereafter rolled
in the 42” primary and the 32” secondary blooming mills. These are rolled further
into different shapes and sizes in different finishing mills.
5.Forge plant:
After the CCM are INGOT process the cured iron are send to forge plant for
the shaping here more than 300mm width is manufactured.
6.Finishing shop:
After the primary mill or bar mill the iron bar are send to the finishing
where the defective parts are removed through grinding and cutting.
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DGM
SR. MGR MGR SR. MGR

FIN (P&E) FIN (PA) FIN (COST)
ASST. MGR MGR JR.MGR MGR-FIN MGR-FIN

FIN (P&E) FIN (COST) PUNE CHENNAI
FIN (A/C’S)
ASST. MGR ASST. MGR JR. MGR MGR-FIN ASST. MGR

Finance department:
FIN (PA) (FIN) (SA&CE) FIN (SA)
FIN (ADV)
ASST. MGR JR. MGR

FIN (CASH) FIN (CE)
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ASST. MGR MGR
FIN (PUR FIN (CA)

As for as finance department is concerned it is divided into different sub

departments, like
 Cost accounting
 Purchase accounts
 Sales account
 Central exercise
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 Cash department
 Pay and establishment
Cost accounts:
In management accounting, cost accounting establishes budget

and actual cost of operations, processes, departments or product and the analysis
of variances, profitability or social use of funds. Managers use cost accounting to
support decision-making to cut a company's costs and improve profitability.
Elements of cost:
 Material(Material is a very important part of business)

o Direct material
o Indirect material
 Labor
o Direct labor
o Indirect labor
 Overhead
o A. Indirect material
o B. Indirect labor
(In some companies, machine cost is segregated form overhead and reported as a
separate element)
They are grouped further based on their functions as,
 1. Production or works overheads

 2. Administration overheads
 3. Selling overheads
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 4. Distribution overheads
Classification of costs:
Classification of cost means, the grouping of costs according to their common

characteristics. The important ways of classification of costs are:
 By nature or element: materials, labor, expenses

 By functions: production, selling, distribution, administration, R&D,
development,
 As direct and indirect
 By variability: fixed, variable, semi-variable
 By controllability: controllable, uncontrollable
 By normality: normal, abnormal
Purchase accounts:
Purchase accounting is mainly involved in the process of maintaining the

accounts of payment made for the purchase of raw materials or any other assets.
Sales account:
Sales accounting is the maintenance of the sales record for the sales made
by the company.
Central excise:
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The Central Excise duty is levied in terms of the Central Excise Act, 1944
and the rates of duty, ad valorem (on value) or specific, are prescribed under the
Schedule I and II of the Central Excise Tariff Act, 1985. The taxable event under
the Central Excise law is ‘manufacture / production’ and the liability of Central
Excise duty arises as soon as the goods are manufactured or produced. This
department looks after that the exercise duty imposed on the customer should
not be a burden on them.
Cash department:
The main purpose of the cash department is to maintain all the cash
transactions of the company it may be inlet or outlet.
Pay & establishment:
This department is to look after the payment of salary, bonus, production

bonus, performance rating to the employees of the company.
Summary of latest annual report
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Balance sheet:
The total fixed assets after deducting the depreciation is Rs. 202.36 croers
and no reserves and surplus made in the year.
Application made like this in investments Rs. 0.00 croers, net fixed assets
Rs. 90.41 crores total current assets Rs. 561.42 crores current liability Rs. 109.11
crores and provision made is 195.27 crores. Shows the balance sheet.
Profit & loss account:
The total expenses Rs. 758.29 crores the profit before tax is 749.72 and the
profit after tax is Rs. 149.29 crores shows profit and loss account.
STEEL AUTHORITY OF IN DIA LIMITED/VISL, BHADRAVATHI

BALANCE SHEET AS AT 31ST MARCH, 2010
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Schedule 31-mar- 31-mar-

no 2010 2009
Source of fund:
Loans funds
Secured loan 1.1 0 0 12.11 12.11
Unsecured loans 0 0
Deferred tax 0 0
Liability (net)
Inter unit account 1.2 1429.69 1299.47
1429.69 1311.58
Applications of funds:
Fixed assets 1.3
Gross block 355.39 292.77
Less: depr 214.97 202.36
Net block 140.42 90.41
Capital work in progress 1.4 17.52 157.94 48.43 138.84
Current assets loans & advances
Inventories
Sundry debtors 1.5 343.28 448.57
Cash and bank balance 1.6 95.26 82.88
Interest receivable? 1.7 22.76 4.33
Accrued 1.8 0.61 0.00
Loans & advances 1.9 27.62 25.74
489.53 561.42
Less: current liabilities & provisions

Current liabilities 128.78 109.11
provisions 1.10 136.77 195.27
1.11 265.55 304.38
Net current assets 223.98 257.04
Miscellaneous
Expenditure 1.12 0.00 0.00
Profit & loss a/c 915.01 814.33
Debit balance
Inter unit a/c 1.13 132.76 101.37
1429.69 1311.58
Different accountability measures:
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Accountability measures are the controlling measures adopted in VISP for

internal control and smooth running of dept. activities, by conducting
different types of audits;
 Internal audit
 Cross plant audit
 Corporate audit
 Statutory audit
 Govt. audit
 Central excise audit
 State VAT audit
 Vigilance audit
o Internal audit is conducted by internal staff member by time to time.

o Cross plant internal audit are conducted by the same system plant
audit people from time to time
o Corporate audit is conducted by the corporate office staff yearly once
o Statutory audit are conducted by the staff according to CAG
standards
o Govt. audit are conducted by only CAG staff according to their rules
and regulations
o Central excise audit are conducted by the central excise department
staff
o State VAT audit are conducted by VAT staff
o Vigilance audit is conducted by the staffs of VISP only if any
malpractice is found
Government Policy:
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
 Trickle down hypothesis for balanced regional development guided

tremendously the location of I&S industry in the backward regions.
 Policy of developing Growth Centers & Growth Poles with I&S industry as
their core also influenced its location in India.
 Political lobbying at times influences greatly its location.
 VISW Plant was set up to fulfill Defense requirements.
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Chapter-4
SWOT analysis
Findings
Conclusion
Suggestions
SWOT analysis of the VISP:
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
SWOT analysis gives us a detail picture of the organization

strength, weakness, opportunity, threat. These are very essential for any
organization to know its ability in the field of:
 Sales
 Marketing
 Capacity
 Working capital
 Budget allocation
 Size and segmentation
 Growth pattern and maturity
 International dimensions
 New technologies etc;
Strength:
 A strong Team work

 Committed & skilled labors
 Efficient management units
 Well equipped lab facilities
 Known as quality suppliers of alloy & special steel
 Certified with ISO 9002 certificate by M/S R W TUV Germany
Weakness:
 Old & traditional method in production process

 Being a public sector emphasis is more on welfare measure rather that
productivity growth of the organization
 Employees of age group more than 53 are more in numbers
Opportunities:
GIRISH.B.P
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
 Growing market for iron & steel

 Competitive environment calls for improvement and increase in
productivity
 Cutting cost by making sure of new technology
 Goodwill of the company is very strong
Threats:
 The other manufactures may sell their products at low price with their
advanced technology
 Emerging new companies to the market
 Raise in the cost of raw materials.
Findings:
GIRISH.B.P
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
Industry should face with changing technology, it is very difficult to stay

ahead in present competitive environment in terms of quality commercial viability
and demanding ecological factors.
1. Decreasing production level

2. Decreasing demand.
3. Employee of age group of 50 and above are more in numbers
4. Competing with private industries going harder day by day.
5. Very limited marketing area.
6. No involvement of employees in the decision making process.
7. Traditional method is still in routine.
8. Entry of private sector in the market.
Conclusion:
GIRISH.B.P
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
From doing the project we have got a great experience of real situation of
an organization. It help to know about Indian steel industries and Visvesvaraya
iron and steel industries process of operation and its finance department
operations. Which is very similar to our theory but very complicated and sensitive
in practical part.
Through this project I came to know about the strength, weakness,

opportunites, threats of the steel Industries, and regarding the govt policies and
the future aspect of these companies.
Suggestions:
GIRISH.B.P
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
1. As VISL is a very large company and the required man power is also more so
it should concentrate more on his man power.
2. Today’s word is fully based on technology it is very necessary to run
according to time. VISL has to concentrate more on his technical factors.
3. As VISL is of large company it as to concentrate more on its marketing also
because if production is the main organ, then marketing is its life blood.
4. It as to concentrate on reducing of its fixed cost also.
5. It as to find more alternatives of availability of raw materials.
6. It has to concentrate more on its contract labors
7. SAIL should give more attention towards the VISP to regain its original
position.
8. As the plant location is very plan fully made by Sir. M. Visvesvaraya, we
should try to protect it and take it to a standard level.
FUTURE PROSPECTS OF STEEL INDUSTRY:

 The recent upswing in the international steel market has been a booster
dose for Indian steel industry but the real party can begin only when the
GIRISH.B.P
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
domestic market offers right environment and opens up avenues for long-
term sustenance and growth.
 The potential for growth of this sector is enormous. This can be gauged
from the fact that the per capita consumption of steel is still around 29 kg
whereas the world average is 150 kg. Even to equal the world average, with
its population over a billion, will have to touch 150 million tones (present
consumption 29 million tones).
 Generation of such kind of demand is dependent on health and rate of
growth of other sectors of economy like roads, power, railways, ports,
drinking water, housing and manufacturing.
 New Road Projects estimated to cover around 10,000 kms, four laning of
existing roads is also planned. These will be a good source of new demand
for steel.
 As the country will need more Greenfield capacities in the coming years,
the steel sector can hope to get the required impetus for steady growth.
 Track renewal plans of railways for about 35000 kms. This will boost the
demand for steel in a major way. More high-speed trains, new demand for
coaches and wagons, and building of underground railway system will help
boost its demand.
GIRISH.B.P
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
Chapter-5
List of reference
Bibliography
List of reference:
 Business policy and strategy formulation
GIRISH.B.P
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
o By, R. Srinivasan
 Finance management theory and practice
o By, Prasanna Chandra
 Sail magazines, iron and steel news
Bibliography:
 Previous Project report
By, Harish. R
Student of Kuvempu University
Websites:
 Wikipedia
GIRISH.B.P
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
GIRISH.B.P
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A Mini Project Report On Organisational Operation and Financial Management OF Visvesvaraya Iron and Steel Plant (Sail-Visp Bhadravathi)

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A Mini Project Report On Organisational Operation and Financial Management OF Visvesvaraya Iron and Steel Plant (Sail-Visp Bhadravathi)

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A MINI PROJECT REPORT ON

ORGANISATIONAL OPERATION AND FINANCIAL

VISVESVARAYA IRON AND STEEL PLANT

 Limitations of the study…………………………………..…... 15

 Awards of the company…………………………………….…. 20

 Points collected during the visit……………………………. 24

level of social-economic development and living standards of the people. As such,

GROWTH AND DEVELOPMENT:

Rapid growth after independence:

started at Bhilai (with erstwhile USSR’s Technical and Financial support),

o New PSUs had yet to start production

Exponential growth (1960 – mid 90s)

o Started with coming up of Bhilai, Durgapur and Rourkela Plants

Plateau Section (Stagnation) (Mid 90s – 2001)

o After liberalization, tertiary sector started becoming more important

Steel Authority of India Limited:

Steel Authority of India Limited (SAIL) is one of the largest state-owned

Major plants owned by SAIL are located at Bhilai, Bokaro, Durgapur,

SAIL Integrated Steel Plants

Special Steel Plants

1. Centre for Engineering and Technology

7. SAIL consultancy organization[2]

o NTPC SAIL Power Company Pvt. Ltd (NSPCL)

o Bokaro Power Supply Company Pvt. Limited (BPSCL)

o Mjunction Services Limited

o SAIL-Bansal Service Center Ltd

o Bhilai JP Cement Ltd

o Bokaro JP Cement Ltd

Ownership and Management:

 National Institute of Personnel Management conferred the National Award

Bradstreet – Rolta Corporate Awards 2008.

Health and Safety – 2008 for BSL.

Other major steel producers

 Aichi Steel Corporation, Japan

 China Metallurgical Group Corporation, China

1. To know practically the organizational operation and the strategies used.

2. To study about the finance department and its process.

3. To know the strength, weakness, opportunities, and threat of the

4. To study of balance sheet formation.

5. Profit and loss account calculation by considering different factors.

In order to carry out the project I have to collect information regarding

From primary method I have got the information regarding

The secondary data are collected from

Limitation of the organization study:

There are some limitation faced during the project

 High grade Hematite iron ore from Kemmangundi Mines in Chikmaglur

1938: cement plant started.

1989: VISL was taken over by SAIL as subsidiary company.

Nature of business carried:

In India, there is a large potential to expand the steel market, which is

Awards of the company:

 1988: National Safety Award.

Organization structure of VISP:

GM WORKS GM GM GM DGM-I/C DGM AGM PUBLIC

MGR ASST GM ASST GM ASST GM AGM-I/C AGM EMPLOYEES

EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES

VISP consists of different departments for the smooth operating process.

 Raw material section

Points collected during the visit:

1. Raw material department:

The main raw materials are:

 Iron ore Main components