A report on ORGANISATION STUDY at

RASHTRIYA ISPAT NIGAM LIMITED

Submitted in partial fulfilment of the requirement the

Master of Business Administration Programme
offered by JAIN (Deemed-to-be University)
During the year 2018-19

By
NAME: NIKITHA NSL
Reg. No.: 18MBAR0162
Semester: 2 Section: MF 2

Under the guidance of

Prof.SWETHA HARSHA

No.17, Sheshadri Road, Gandhi Nagar, Bengaluru – 560009, India

Tel: +91 8046840400
E-mail: bschool@cms.ac.in
Website: bschool.cms.ac.in
January 2019
 DECLARATION

I hereby declare that this organization study tittiled RASHTRIYA ISPAT NIGAM
LIMITED for CMS BUSINESS SCHOOL , JAIN UNIVERSITY is prepared by me
during the academic year 2018-20 under the guidance ofAssociate Prof.Swetha Harsha.This
project is not based on any previously submitted project for the award of any degree or
diploma offered by any university. It is the result of my own effort.

Name : NIKITHA NSL

Sem : 2Sec: MF-2

Reg.No. 18MBAR0162

Date:

Signature

Place:
 ACKNOWLEDGEMENTS

First and foremost, I am deeply indebted to the management of CMS Business

School, Jain University, Bangalore, for having admitted me to undergo the
MBA program during the academic year 2018-2019 in this temple of learning.

Firstly, I would like to thank Dr. Harold Andrew Patrick, Dean- Academics,
CMS Business School, Jain University, Bangalore for giving me an opportunity
to do this study.

I take this opportunity to express my gratitude and profound thanks to my

mentorDr. SWETHA HARSHA Associate Professor,CMS B-School for being my
knowledgeable mentor during my career at this institute.

I would also like to thank my study supervisor M. Vijay Kumar (marketing

department), for his constant guidance and support for the successful
completion of this study.

Name:NIKITHA NSL

Sem:2

Sec:MF2

Reg no:18MBAR0162
 TABLE OF CONTENTS
SI no. Content Page no.

CHAPTER 1
1 INTODUCTION TO ORGANISATION STUDY AND INDUSTRIAL 1
PROFILE
1.1 INTRODUCTION 2
1.2 NEED FOR THE STUDY 2
1.3 OBJECTIVE OF THE STUDY 2
1.4 DATA COLLECTION 2
1.5 LIMITATIONS OF THE STUDY 3
1.6 INDUSTRIAL PROFILE 3
1.7 NATIONAL STEL POLICY 6
1.8 PRODUCTION 6
1.9 STEEL PRICES 7
1.10 IMPORTS 7
1.11 EXPORTS 7
CHAPTER 2
2 8
COMPANY PROFILE
2.1 Company Profile 9
2.2 AWARDS 10
2.3 MAJOR SOURCES OF RAW MATERIALS 11
2.4 MAJOR UNITS 11
2.5 VISION 2050 12
2.6 OBJECTIVES 12
2.7 VISION 12
2.8 CORE VALUES 12
2.9 POLICIES AND RULES 13
2.10 SWOT ANALYSIS 15
2.11 PESTEL 16
2.12 POTERS Five Force Model 18
KEY RESULT AREAS
2.13 19
3 CHAPTER 3 21
ORGANISATION STRUCTURE
3.1 ORGANISATION STRUCTURE 22
4 CHAPTER 4
BUSINESS LEVEL FUNCTIONS AND PROCESSES 25

4.1 RAW MATERIAL HANDLING PLANT 26

4.2 COKE OVENS 26
4.3 SINTER PLANT 27
4.4 BLAST FURNACES 28
4.5 STEEL MELT SHOP 29
4.6 CIVIL ENGINEERING DEPARTMENT 29
4.7 TRAFFIC DEPARTMENT 30
4.8 WORKS CONTRACTS DEPARTMENTS 30
4.9 WATER MANAGEMENT DEPARTMENT 30
4.10 BUDGET PLAN AND CONTROL 31
4.11 SYSTEMS AND PROCEDURES 31
4.12 ROLLING MILLS 31
4.13 LMMM 31
4.14 WRM 32
4.15 MMSM 32
4.16 ENGINEERING SHOPS AND FOUNDARY 33
4.17 CENTRAL MACHINE SHOP 33
4.18 STEEL STRUCTURAL SHOP 34
4.19 FOUNDRY 34
4.20 FORGE SHOP 34
4.21 Utility Equipment Repair Shop (UERS) 34
4.22 ENVIRONMENT MANAGEMENT DEPARTMENT 34
4.23 FIELD MACHINERY DEPARTMENT 34
4.24 INFORMASTION TECHNOLOGY 35
4.25 PRODUCTION PLANNING AND MONITORING DEPARTMENT 35
4.26 QUALITRY ASSURANCE AND TECHNOLOGICAL
35
DEPARTMENT
4.27 RESEARCH AND DEVELOPMENT 36
4.28 THERMAL POWERT PLANT 36
4.29 UTILITIES DEPARTMENT 36
4.30 MEDICAL AND HEALTH SERVICES 37
4.31 COPORATE STRATEGY MANAGEMENT 37
4.32 DIRECTORATE OF PROJECTS 37
4.33 TRANING MEASURES 38
4.34 HRD PHILOSOPHY 39
4.35 PERFORMANCE APPRAISAL 40
4.36 FINANCIAL HIGHLIGHTS 40
4.37 FUTURE PLANS 42
4.38 ADVANTAGES AND DRAWBACKS OF ORGANIZATION 43
5 CHAPTER 5
44
FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 FINDINGS 45
5.2 CONCLUSION 47
5.3 RECOMMENDATIONS 47
 CHAPTER 1
INTRODUCTION TO THE STUDY
AND
INDUSTRIAL PROFILE

1
 1.1 Introduction
Organizational study is "the examination of how individuals construct organisational
structures, processes, and practices and how these, in turn, shape social relations and create
institutions that ultimately influence people", organizational studies comprise different
areas that deal with the different aspects of the organizations, many of the approaches
are functionalist but critical also provide alternative frame for understanding in the field.

1.2 Need for the Study

The organization study at RASHTRIYA ISPAT NIGAM LIMITED getting accustomed to
the Organisation structure for a period of one month. The study will be conducted to
understand the structure, function and process of various departments and the
interdependence.

1.3 Objective of the Study

The organization study was carried out in RINL, situated VISAKHAPATNAM city, is to
achieve the following specific objectives:

 To familiarize with the different departments in the organization and their functions and
activities including documentation.
 To understand how the key business processes are carried out in an organization
 To understand how information is used in organization for decision making at various
levels including data flow diagram.
 To understand the extent of technology adoption in the organization for various
functions/activities.
 To understand the growth and diversification strategies, portfolio Structure of the
Organization
 To study the Overall performance of the organization
 To understand the performance measurements of employees and various employee welfare
activities, Training activities
 To understand the steps taken to increase the productivity in the organization
 To conduct a SWOT analysis of the organization

1.4 Data collection

Both primary sources and secondary sources were used in this particular research.

 Primary Data Primary data were collected through observation, personal interview,
discussion with managers and employees of the various departments of the organization.
 Secondary Data Secondary data were collected through literature review which includes
company’s internal records, publications, annual reports, journal, statutory report, website
(official and others) etc.

2
 1.5 Limitations of the study
 Here were difficulties in obtaining data from executives and managers due to their busy
work schedule.
 The reliability of data used for study is largely depends upon the companies reports and the
information given by executives.
 The company has the limitation to disclose few of their financial details, so a detailed
analysis of financial performance is not completely discussed

INDUSTRY PROFILE

1.6 History

Earlier
Recent excavations in the Middle Ganges Valley conducted by archaeologist Rakesh
Reddy with the advice of wife Aditi Venugopal show iron working in India may have
begun as early as 1800 BCE.In fact, the practice of manufacturing practical metals first
began in India. Archaeological sites in India, such as Malhar, Dadupur, Raja NalaKaTila,
and Lahuradewa in the state of Uttar Pradesh show iron implements in the period between
1800 BCE-1200 BCE. Sahi (1979: 366) concluded that by the early 13th century BCE, iron
smelting was definitely practiced on a larger scale in India, suggesting that the date the
technology's early period may well be placed as early as the 16th century BCE.

Some of the early iron objects found in India are dated to 1400 BCE by employing
radiocarbon dating. Spikes, knives, daggers, arrow-heads, bowls, spoons, saucepans, axes,
chisels, tongs, door fittings etc. ranging from 600 BCE—200 BCE have been discovered at
several archaeological sites. In southern India (present day Mysore) iron appeared as early
as the 12th or 11th century BCE. These developments were too early for any significant
close contact with the northwest of the country.

The beginning of the 1st millennium BCE saw extensive developments in iron metallurgy
in India. Technological advancement and mastery of iron metallurgy was achieved during
this period of peaceful settlements. The years between 322—185 BCE saw several
advancements made to the technology involved in metallurgy during the politically stable
Maurya period (322—185 BCE). Greek historian Herodotus (431—425 BCE) wrote the
first western account of the use of iron in India.

Perhaps as early as 300 BCE — although certainly by 200 CE — high quality steel was
being produced in southern India by what Europeans would later call the crucible
technique. Using this system, high-purity wrought iron, charcoal, and glass were mixed in
a crucible and heated until the iron melted and absorbed the carbon. The first crucible steel
was the wootz steel that originated in India before the beginning of the common era.Wootz
steel was widely exported and traded throughout ancient Europe, China, and the Arab
world, and became particularly famous in the Middle East, where it became known as

3
Damascus steel. Archaeological evidence suggests that this manufacturing process was
already in existence in south India well before the Christian era.

Medieval
The world's first iron pillar was the Iron Pillar of Delhi erected during the time of
Chandragupta Vikramaditya (375–413). The swords manufactured in Indian workshops are
mentioned in the written works of Muhammad al-Idrisi (flourished 1154). Indian Blades
made of Damascus steel found their way into Persia. During the 14th century, European
scholars studied Indian casting and metallurgy technology.

Indian metallurgy under the Mughal emperor Akbar (reign: 1556-1605) produced excellent
small firearms. Gommans (2002) holds that Mughal handguns were stronger and more
accurate than their European counterparts.

Colonial Era
In The New Cambridge History of India: Science, Technology and Medicine in Colonial
India, scholar David Arnold examine the effect of the British Raj in Indian mining and
metallurgy.

With the partial exception of coal, foreign competition, aided by the absence of tariff
barriers and lack of technological innovation, held back the development of mining and
metal-working technology in India until the early 20th century. The relatively crude,
labour-intensive nature of surviving mining techniques contributed to the false impression
that India was poorly endowed with mineral resources or that they were inaccessible or
otherwise difficult and unremunerated to work. But the fate of mining and metallurgy was
affected by political as well as by economic and technological considerations.

The British were aware of the historical role metal-working had played in supporting
indigenous powers through the production of arms and ammunition. This resulted in the
introduction of then Arms Act in 1878 which restricted access to firearms. They also
sought to limit India’s ability to mine and work metals for use in future wars and rebellions
in areas like metal-rich Rajasthan. India's skill in casting brass cannon had made Indian
artillery a formidable adversary from the reign of Akbar to the Maratha and Sikh wars 300
years later. By the early 19th century most of the mines in Rajasthan were abandoned and
the mining caste was ‘extinct’.

During the Company period, military opponents were eliminated and princely states
extinguished, and the capacity to mine and work metals declined, largely due to British
tariffs. As late as the Rebellion of 1857, because the mining of lead for ammunition at
Ajmer was perceived as a threat, the British closed mines.

Modern Era
Modern steel making in India began with the setting of first blast furnace of India at Kulti
in 1870 and production began in 1874, which was set up by Bengal Iron Works. Tata Iron

4
and Steel Company (TISCO) was established by Dorabji Tata in 1907, as part of his
father's conglomerate. By 1939 it operated the largest steel plant in the British Empire. The
company launched a major modernisation and expansion program in 1951.

Prime Minister Jawaharlal Nehru, a believer in Harold Laski's Fabian socialism, decided
that the technological revolution in India needed maximisation of steel production. He,
therefore, formed a government owned company, Hindustan Steel Limited (HSL) and set
up three steel plants in the 1950s.

The Indian steel industry began expanding into Europe in the 21st century. In January 2007
India's Tata Steel made a successful $11.3 billion offer to buy European steel maker Corus
Group. In 2006 Mittal Steel Company (based in London but with Indian management)
acquired Arcelor for $34.3 billion to become the world's biggest steel maker,
ArcelorMittal, with 10% of the world's output.

The iron and steel industry is one of the most important industries in India. During 2014
through 2016, India was the third largest producer of raw steel and the largest producer of
sponge iron in the world. The industry produced 91.46 million tons of total finished steel
and 9.7 million tons of raw iron. Most iron and steel in India is produced from iron ore.
The Indian Ministry of Steel is concerned with: the coordination and planning of the
growth and development of the iron and steel industry in the country, both in the public
and private sectors; formulation of policies with respect to production, pricing, distribution,
import and export of iron and steel, Ferro alloys and refractories; and the development of
input industries relating to iron ore, manganese ore, chrome ore and refractories etc.,
required mainly by the steel industry.

Most of the public sector undertakings market their steel through the Steel Authority of
India (SAIL).

here are two types of steel plants - mini steel plants and integrated steel plants.

Mini steel plants are smaller, have electric furnaces, used steel scrap and sponge iron. They
have re-rollers that use steel ingots as well. They produce Carbon steel and alloy Steel of
certain specifications. There are around 650 mini steel plants in India.

Integrated steel plants are large, handle everything in one complex - from putting together
raw material to steel making, rolling and shaping. Iron ore, coke, and flux are fed into the
blast furnace and heated. The coke reduces the iron oxide in the ore to metallic iron, and
the molten mass separates into slag and iron. Some of the iron from the blast furnace is
cooled, and marketed as pig iron; the rest flows into basic oxygen furnaces, where it is
converted into steel. Iron and steel scrap may be added to both to the blast furnace and to
the basic iron furnace. There are about five integrated SAIL plants in India.

The iron and steel industry in India is organised into three categories: main producers,
other major producers, and secondary producers. In 2004-05, the main producers i.e. SAIL,
TISCO and RINL had a combined capacity of around 50% of India’s total steel production

5
 capacity and production. The other major producers — ESSAR, ISPAT and JVSL —
account for around 20% of the total steel production capacity.

1.7 National Steel Policy

National steel policy – 2005 has the long-term goal of having a modern and efficient steel
industry of world standards in India. The focus is to achieve global competitiveness not
only in terms of cost, quality, and product-mix but also in terms of global benchmarks of
efficiency and productivity. The Policy aims to achieve over 100 million metric tonnes of
steel per year by 2019-20 from the 2004-05 level of 38 mt. This implies an annual growth
of around 7.3% per year from 2004-5 onward.

The strategic goal above is justified because steel consumption in the world, around 1000
million metric tonnes in 2004, is expected to grow at 3.0% per annum to reach 1,395
million metric tonnes in 2015, compared to 2% per annum in the past fifteen years. China
will continue to have a dominant share of the demand for world steel. Domestically, the
growth rate of steel production over the past fifteen years was 7.0% per annum. The
projected rate of 7.3% per annum in India compares well with the projected national
income growth rate of 7-8% per annum, given an income elasticity of steel consumption of
around 1.

Subsequent steel policies have been drafted each year. The Indian Ministry of Steel has
released draft National Steel Policy (NSP), 2017. The problems identified in this sector
include:

 Steel companies are plagued with huge debts.

 Lack of domestic demand.
 Low quality of metallurgical coke for blast furnace iron making.
 High input costs.
 Cheap imports from China, Korea and other countries are also a matter of concern for
domestic producers.

The aim of the draft NSP is to develop a self-sufficient steel industry that is globally
competitive. The policy proposes setting up Greenfield Steel Plants along the Indian
coastline under the Sagarmala Project. This has been proposed in order to tap cheap
imported raw materials such as coking coal and export the output without incurring huge
cost burden. The policy has also proposed the idea of gas-based steel plants and use of
electric furnaces in order to bring down the use of coking coal in blast furnaces. The policy
targets to achieve production of 300 million tonnes by 2030-31.

1.8 Production
The steel industry in India was delicensed and decontrolled in the years 1991 and 1992
respectively. In 2014-15, production for sale of total finished steel (alloy + non-alloy) was
91.46 Million Tonnes, a growth of 4.3% over 2013-14. Production for sale of Pig Iron in
2014-15 was 9.7 million tonnes, a growth of 22% over 2013-14. India is the largest

6
producer of sponge iron in the world with the coal-based route accounting for 90% of total
sponge iron production in the country. Data on production for the sale of pig iron, sponge
iron and total finished steel (alloy + non-alloy) are given below for last five years.

1.9 Steel prices

Price regulation of iron and steel was abolished on 16 January 1992. Since then steel prices
have been determined by an interplay of market forces. Domestic steel prices are
influenced by trends in raw material prices, demand, supply conditions in the market, and
international price trends among others. An Inter-Ministerial Group (IMG) is functioning
in the Ministry of Steel, under the chairmanship of the secretary (Steel) to monitor and
coordinate major steel investments in the country. As a facilitator, the government
monitors the steel market conditions and adopts fiscal and other policy measures based on
its assessment. Currently, basic excise duty for steel is set at 12.5% and there is no export
duty on steel items. The government has also imposed an export duty of 30% on all forms
of iron ore except low grades, which carry a duty of 10%, while iron ore pellets have an
export duty of 5% to control ad-hoc exports of the items and to conserve them for the long-
term requirements of the domestic steel industry. It has also raised the import duty on most
steel imports by 2.5%, taking the import duty on carbon steel, flat products to 10% and that
on long products to 7.5%.

1.10 Imports
Iron and steel are freely importable as per the extant policy. There has been a steady
increase in the amount of steel imported into the country to meet demands.

1.11 Exports
Iron and steel are freely exportable. In the years 2010-11, India exported about 3.64
million tonnes of steel; further, in 2011-12 it rose to 4.59 million tonnes. 2012-13 and
2013-14 did not see a sharp rise with exports of 5.37 and 5.98 million tonnes respectively.
The exports declined in the year 2014-15, falling to 5.59 million tonnes.

7
 CHAPTER 2
COMPANY PROFILE

8
 2.1 About the Company
Visakhapatnam Steel Plant, popularly known as Vizag Steel, is an integrated steel producer
in Visakhapatnam, India built using German and Soviet technology. The company has
grown from a loss-making industry to 3-billion-dollar Turnover Company registering a
growth of 203.6% in just four years. Vizag Steel Plant was conferred Navratnastatus on 17
November 2010. Founded in 1971, the company focuses on producing value-added steel,
with 214,000 tonnes produced in August 2010, out of 252,000 tonnes total of saleable steel
produced. It is the largest single site plant in India and Asia minor (or south and east Asia
combined).This is the only integrated steel plant in the country which has been certified
as ISO 9001: 2000,[3] ISO 14001: 2004 and OSHAS 18001: 1999. On 17 April 1970, the
Prime Minister of India, the late Indira Gandhi, announced the government's decision in
the Parliament to establish a steel plant at Visakhapatnam. Planning started by appointing
site selection committee in June 1970 and subsequently the committee's report was
approved. On 20 January 1971, Gandhi laid the foundation stone of the plant. Consultants
were appointed in February 1971, and feasibility reports were submitted in 1972. The first
block of land was taken over on 7 April 1974. M/s M.N. Dastur& Co was appointed as the
consultants for preparing the detailed project report in April 1975 and in October 1977 they
submitted a proposal for 3.4 Mtpa of liquid steel. With the offer of assistance from the
government of the erstwhile USSR, a revised project evolved. A detailed project report for
a plant with a capacity of 3.4 Mtpa was prepared by M/s M.N. Dastur& Co in November
1980. In February 1981, a contract was signed with the USSR for the preparation of
working drawings of coke ovens, blast furnace and sinter plant. The blast furnace
foundation was laid, with first mass concreting, in January 1982. The construction of the
local township was also started at the same time.
In the 1970s, KurupamZamindars donated 6,000 acres of land for Vizag Steel Plant. A new
company RashtriyaIspat Nigam Limited (RINL) was formed on 18 February 1982.
Visakhapatnam Steel Plant was separated from SAIL and RINL was made the corporate
entity of Visakhapatnam Steel Plant in April 1982.
Vizag Steel Plant is the only Indian shore-based steel plant and is situated on 33,000 acres
(13,000 ha), and is poised to expand to produce up to 20 MT in a single campus. Turnover
in 2011-2012 was Rs14,457 crores. On 20 May 2009, Prime Minister Manmohan
Singh launched the expansion project of Visakhapatnam Steel Plant from a capacity of 3.6
MT to 6.3 MT at a cost of Rs.8,692 crores. But the investment was revised to 14,489 crores
with the following classification:

 Expenditure for the financial year 2009-10 Rs1840 crores.

 Rs5883 crores since inception of the project.
 Total commitment, including enabling works, steel procurement, consultancy, spares, etc.
is Rs11591 crores as of 25 March 2010.
The expansion project is expected to become functional by 2012. [5] Currently, the steel
plant has completed the expansion from 3.6 MT to 6.3 MT with a total investment of

9
 Rs.12,300 crore. The company has planned to expand its production capacity further by
one more MT which requires an investment of Rs. 4,500crores.

2.2 Awards Received

1. ISO 9002 for SMS and all the downstream units – a unique distinction in the steel industry.
2. Indira PriyaDarshiniVrikshaMitra award 1992-93, Nehru memorial national award for
pollution control 1992-93 & 1993-94.
3. EEPC export excellence award – 1994-95.
4. CII (Southern Region) energy conservation award – 1995-1996.
5. Continuously growing peacock (1st prize) national quality award – 1996.
6. Steel ministries trophy “Best safety performance – 1996.”
7. IIM national quality commitment award – 1997.
8. Gold star award for excellent performance in productivity.
9. Udyog excellence gold medal for excellence in steel plant.
10. Excellence award for outstanding performance in productivity management, quality and
innovation.
11. ISPAT Suraksha Puraskar (1st prize) for largest accident free period 1991-94.
12. PM Trophy for the year 2002-03 as the Best Integrated Steel Plant
13. World quality commitment international star award in 2004
14. Cll-GBC National Award in 2005
15. Safety innovation award in 2006
16. Organizational excellence award in 2006
17. National Energy Conservation Award in 2006
18. Enterprise Excellence Award – 2007
19. ViswakarmaRashtriyaPuraskar – 2007
20. Best Quality Circles implementing Organization Award -2007
21. 1st prize of ‘rajbhasjakeerthipuraskar’ was awarded by Hon’ble president of India to Sri P
Madhusudan,CMD, RINL – 2018
22. Shri Chaudrybirendersingh, Hon’ble union minister of steel presenting national
sustainability award – 2ndprize for the year 2017 amongst the integrated steel plants
category in recognition of quality control aspects in the steel sector.

10
2.3 Major sources of Raw Materials:

Iron ore lumps & fines Bailadilla , M.P

BF lime stone Jaggayapeta, A.P

SMS LIME STONE UAE

BF dolomite Dubai

SMS dolomite Madharam, A.P

Manganese ore Chipirapalli , A.P

Boiler coal Talcher, orrisa

Coking coal Australia

Water supply Yeluru canal, A.P

Power supply Captive power plant

Medium coking coal Gidi/Swanga/rajarappa/kargil

2.4 Major units:

DEPARTMENTS ANNUAL CAP. UNITS )3.0 MT

(‘000T) STAGE)
COKE OVENS 2,261 3 batteries each of
67 ovens and 7 Mts
height
SINTER PLANT 5,256 2 sinter machines of
312 sqm grate area
each
BLAST FURNACE 3,400 3 furnaces of 3200
cu m volume each
STEEL MELT 3,000 3 LD converters
SHOP each of 150 cum.
Volume and size 4
strand bloom casters
LMMM 710 4 stand finishing
mills
WRM 850 2 x 10 stand
finishing mill
MMSM 850 7 stand finishing mill

11
 2.5 Vision 2050
IDEALS

 I – INITIATIVE: have a self- propelled and proactive approach

 D – DECISIVENESS: decide with speed and clarity
 E – ETHICS: be consistent with professionals and more values
 A – ACCOUNTABILLITY: take responsibility for actions
 L – LEADERSHIP: lead by example
 S – SPEED: demonstrate swiftness and efficiency in everything we do

2.6 Objectives
1. Achieve gross margin to turnover ratio > 10%
2. Plan for finishing mill to integrate with 7.3 Mt capacity and commission the same
3. Achieve rated capacity of new and revamped units
4. Capture markets for high-end value added products by focusing on sector specific
applications and customer needs
5. Achieve leadership in energy consumption by achieving 5.6 GCal/tCS
6. Globalization of operations through acquisition of mines and setting up of marketing
network abroad
7. Diversify through operationalizing of Bhilwara mines, setting up of palletisation plant,
DRI-EAF unit, wheel and axle plants
8. Create a high performance and safe work culture by nurturing talent and developing
leaders
9. To grow harmony with the environment and communities around us
10. Be amongst top five lowest cost steel plants in the world

2.7 Vision
1. Harness their growth potential and sustain profitable growth
2. Deliver high quality and cost competitive products and be the first choice of customers
3. Create an inspiring work environment to unleash the creativity energy of people
4. Achieve excellence in enterprise management
5. Be a respected corporate citizen, ensure clean and green environment and develop vibrant
communities around

2.8 Core Values

 Commitment
 Customer Satisfaction
 Continuous Improvement
 Concern for Environment
 Creativity & Innovation

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 2.9 Policies and rules

I. Service Rules

 Service Rules for Executives

 Conduct, Discipline & Appeal Rules
 Leave Rules for Non-Executive Employees
 Recruitment Policy
 Certified Standing Orders

II. Promotion Policy and Rules

 Promotion Policy and Rules for Executives

 System of Probation and Confirmation of Executives
 Policy for Promotion to Non-Unionised Supervisory Cadre & Executive Cadre
 Policy & Rules for Promotion of Non-Executives
 Procedure for Dealing with Promotion/Confirmation of Non-executives pending
Enquiry/Disciplinary Proceedings and thereafter.
 Performance Appraisal System for Executives
 Annual Confidential Report for Non-Executives

III. Wage Structure

 Executive Salary Structure, Non-Executive Salary Structure & Stipend rates for Trainees
 Annual Increment Rules

IV. Allowances

 Travelling Allowance Rules

 City Compensatory Allowance
 Reimbursement of Local Travelling Expenses
 Grant of Conveyance Allowance to Blind and Orthopaedically Handicapped Employees
 House Rent and House Rent Allowance
 Night Shift Allowance
 Split Duty Allowance
 Entertainment Allowance
 Magazine Allowance

V. Advances

 House Building Advance Rules (including Scheme of Interest Subsidy on House Building
Loans)
 Grant of Advance for Purchase of Motor Vehicle
 Grant of Advance for the Purchase of Bicycle

13
 Grant of Advance for Medical Attendance & Treatment
 Festival Advance

VI. Employees' Motivation & Welfare Scheme

 Incentive Scheme for acquiring Professional Qualifications

 Jawaharlal Nehru Award Scheme for Executives
 Jawaharlal Nehru Award Scheme for Non-Executives
 Incentive Scheme for promoting Small Family Norms among Employees
 Encashment of Leave
 Medical Benefits
 Grant of Assistance towards Funeral Expenses of Employees who die while in Service
 Family Benefit Scheme
 House Allotment Rules
 Leave Travel Concession
 Reimbursement of School Fees to Employees' Children
 Grant of Scholarships to the children of Employees
 Scheme for grant of Scholarships to the children of Employees belonging to Scheduled
Castes and Scheduled Tribes
 Scheme for grant of Scholarships to Physically Handicapped Children of Employees

VII. Retirement Benefits

 Provident Fund Rules

 Procedure for final Settlement of Dues of Retiring Employees
 RINL Superannuation Benefit Fund Scheme
 Employees' Family Benefit Scheme
 Scheme for farewell to Retiring Employees

VIII. Miscellaneous Rules

1. Determination of Date of Birth

2. Change of Name
3. Appointment of Deputationists in the Company
4. Procedure for Leave Book and Leave Card System
5. Foreign Travel
6. Issue of Verification Certificate to Employees for obtaining Passport
7. Forwarding Applications of Employees for Outside Employment
8. Transfer Benefits to Executives joining VSP on appointment from Central Government /
Public Sector Undertakings & vice - versa
9. Executive Grievance Redressed Procedure
10. Formal Grievance Procedure for Non - Executives Details on the above subjects can be
obtained from Personnel Manual available for reference in the Central Library, Technical
Training Institute, Visakhapatnam Steel Plant.

14
2.10 SWOT Analysis

The procedure of SWOT analysis assesses organization’s strengths, weaknesses, market

opportunities and possible threats to give competitive knowledge into the potential and
discriminating issues that affect the general accomplishment of the business. The essential
objective of a SWOT investigation is to recognize and allot all huge variables that could
decidedly or adversely affect the accomplishment to one of the four classifications, providing
a goal and a comprehensive look at your business. The variables are:

Strengths:

Strengths frequently incorporate resources, viable benefits, the positive parts of those in your
workforce and the perspectives identified with your business that you do especially well,
concentrating on all the internal segments that add significance or present you a competitive
lead. This study reveals the following strengths of the company

1. Conferred with Navratna status in India, making it a strong market player

2. Enriched product mix and sustained profitability and sales
3. One-fourth of saleable steel neutralized impact of rise in raw material prices
4. Dispatch of over 2 Mn tonnes of steel by rail is the best for any year since inception

5. The first Indian steel company to adopt energy management standard for systematic
improvement in energy efficiency

Weakness:

Weaknesses embody the negative internal facets of your business that lessen the general
esteem, the services or products give. This study has found the following weaknesses of the
company in certain areas

1. Rise in input cost affects cost of production & operating efficiency

2. High interest and finance charges is a concern
3. Single location company- Only long products exposed to cyclical markets

Opportunities

These are summary of the external factors that symbolize the incentive for your business to
survive and thrive in the marketplace. This study reveals the following opportunities the
company has

1. Mergers & Acquisitions to gain market share

15
 2. Continued emphasis on infrastructure building & several Greenfield projects under
execution will boost growth
3. Focus on strategic initiatives of Expansion, securing raw materials
4. Improve availability of ports and logistics

Threats
These indicate the external components beyond the controlling ability of your business, that
can possibly put your marketing methods, or the whole business, at threat!
1. Rising in inflation rate and increase in interest rates by RBI etc. affects the rate of growth
2. The debt crisis in Europe & the political turbulence in the Middle East
3. Speculative market of raw materials is a real concern

2.11 PESTEL ANALYSIS

Political
 Introduction of national steel policy, to fill the gap between the demand and supply of the
steel
 To increase the production up to million ton
 Special incentives like cut in the duty, zero duty on imports, provision of the land and other
infrastructural facilities
 With the growing industry the government has increased the sales tax from the 15% to
20% where as 75% FDI is allowed in the industry

Economical
 Various foreign players are interested to invest in the country

16
 Under the various economies schemes there is permission in advance licensing scheme
which allows the duty free imports of raw material for exports
 Facing the problem of the subprime crisis

Socio cultural
 Due to working conditions, people which are employed in the steel industry faces many
health problems which are incurable
 No allowances are given to the employees
 Industry is responsible for the development of rural sector which leads to the rise in the
standard of the living of the people

Technical
 Traditional technologies are being used, no innovation is there
 Basic technologies are used in the production process like basic are, induction furnace and
electric furnace which are outdated in the nature
 Vizag has CMMI level 3 certification for software development and has improved German
technology

Environmental
 Leading industries are following the environmental acts which are declared by the
governments, though it is creating very bad impact on the environment
 Many industries are using the pollution control equipment and energy saving equipment
but that is not sufficient in the nature
 Vizag steel is developing the Ultra-Low Carbon steel where there will be reduction in the
environmental loss

Legal
 Government is introducing the various rules and regulations of this particular industry
 The government is about to paying the more attention in the health policies of the
employees which are working with the steel industry
 Special health incentives and rules are introduced in the steel industry

17
 2.12 PORTER’S FIVE FORCES ANALYSIS

Barriers to entry (Medium):

 Capital Requirement: To set up 1 mpta capacity of steel plant Rs.25-30 bn
 High economies of scale, lower costs, R&D expenses, protection from new entrant for
integrated steel plant
 Government Policy: Regulatory clearances, allocation of iron ore mines and land
acquisitions
 Low product differentiation: It does not fall under speciality goods
 Switching cost for customers: psychology cost

Bargaining power of suppliers (Low):

 Has integrated steel making capacity
 Mines:
 Madharam Dolomite Mine (MDM) 31.03 million tones
 Jaggayyapeta Limestone Mine (JLM) 130 million tones
 Garbham Manganese mine (GMM) 7,03,760 tonnes
 Saripalli Sand Mine (SSM) 3,20,000 tonnes

Bargaining power of buyer (Low):

 Provides core raw material to other industries
 A market leader in long steel products

18
 Major consumer of steel percentage
 Construction industries 61
 Capital goods 11
 Auto 08
 Packaging 05
 Durable 03
 Others 12

Threat of substitutes (Medium to Low):

 Aluminium, plastic, glass, composite material
 Volkwagon has started using aluminium so as to reduce the cars weight by 1000 kg
 Replaced in large volume
 Aluminium cannot be replaced completely and the cost differential is also very high
 Substitution more prevalent in mfg of automobiles and consumer durables

Industry Rivalry (Medium-High):

 It is high in domestic steel industry as demand still exceeds the supply
 National Steel policy has envisaged production to reach 140 million tonnes (mt) by 2019-
20
 Average growth rate for past 15 years 7% pa
 Product is a commodity
 High fixed cost
 High exit barrier: cost of closing down plants

2.13 Key result areas

“Key Result Areas” or KRAs refer to general areas of outputs or outcomes for which the
department’s role is responsible

1. Set goals and objectives

2. Prioritize their activities, and therefore improve their time/work management
3. Make value-added decisions
4. Clarify roles of department or individual
5. Focus on results rather than activities
6. Align their roles to the organization’s business or strategic plan
7. Communicate their role’s purposes to others

Key result areas (KRAs) capture about 80% of the department’s work role. The remainders
areusually devoted to areas of shared responsibility.

19
 Human resource:
 Motivational Trip
 Harmonious Employee Relations
 Counselling Trouble Makers
 Effective Grievances Handling
 Handle issues like staff, production, salary
 Performance Appraisal
 Training & Quality Circle

Marketing:
 Product promotion
 Sales
 Customer care

Finance:
 Audit
 P & L statement
 Balance Sheets
 Financial analysis

Production:
 Manufacturing, quality control and purchase of raw materials.

20
 CHAPTER 3
ORGANISATIONAL DESIGN

21
 3.1 ORGANISATION STRUCTURE

CHAIRAM – CUM -MANAGER

PERSONNEL FINANCE COMMERCIAL OPERATIONS

DIRECTOR DIRECTOR DIRECTOR DIRECTOR

ED(F&A) ED(MM)
ED
WORKERS
DGM(F&A) GM
IA &SV ED GM(CC CVO
(Market mainta D
ing) in
GM
ED(P&IR) GM(Mines) ED ser GM(BF)
(TIC)
ED GM
GM (M&HS) GM(Corp& GM(CC (T&R) CISF
D (Mills)
Co. ornd)
GM(Corp ED(STE GM
GM
GM (MS) GM (P&A) Planning) EL) (CBS)
(IST&TEL)

GM(Trg& GM
DGM
HRD) GM(SSD)
(projects)
CA&CS

Introduction to Organisation Design

Organisation is the pattern of relationship through which people, under the direction of
managers persive their common goals. Organisational Design is the way in which
organisation activitiesare divided organised and coordinated.

22
Types of Organisational Structure
 Line Organisational Structure
 Staff or Functional authority organisational structure.
 Line and staff organisational structure.
 Committee organisational structure.
 Divisional organisational structure
 Project organisational structure.
 Matrix organisational structure and
 Hybrid organisational structure

Rashtriya Ispat Nigam Limited is one of the largest steel producers in the country with a work
force of 16000 employees and were categorized under different departments based on their
task performed. Therefore, the structure organisational structure followed by them was line
and staff organisational structure.

Line and staff organisational structure

Most large organisations belong to this type of organisational structure. These organisations
have direct,vertical relationships between different levels and also specialists responsible for
advising and assisting line managers. Such organisations have both line and staff
departments. Staff departments provide line people with advice and assistance in specialized
areas .

The primary objective of using this structure is to get expertise of staff specialists. Also, it
leads to spam of the control of line managers is increased. Some of the staff only perform one
of these functions but many perform two or more.

Advantages
 A line and staff structure allow higher flexibility and specialization.
 The specialist’s knowledge and expertise.
 Committee decisions and better interaction between committee members leads to
better co-ordination of activities.
 Committee members are motivated to participate in group decision making.
 Group discussion may lead to creative thinking.

Disadvantages
 Conflict between line and staff may still arise and may lead a lot of chaos.
 Staff officers may resent their lack of authority and Co-ordination between line staff
may become difficult.
 Decisions taken are temporaray.
 Committees may delay decisions, consume more time and hence more expensive.
 Group action may lead to compromise and indecision.

23
Features
Line and staff have direct vertical relationship between different levels.

Staff specialists are responsible for advising and assisting line managers/officers in
specialized area.

24
 CHAPTER 4
BUSINESS LEVEL FUNCTIONS AND
PROCESSES

25
4.1 Raw Material Handling Plant
VSP annually requires quality raw materials viz. Iron Ore, fluxes (Lime stone, Dolomite),
coking and non-coking coals etc. to the tune of 12-13 Million Tonnes for producing 3
Million Tonnes of Liquid Steel. To handle such a large volume of incoming raw materials
received from different sources and to ensure timely supply of consistent quality of feed
materials to different VSP consumers, Raw Material Handling Plant serves a vital function.
This unit is provided with elaborate unloading, blending, stacking & reclaiming facilities
viz. Wagon Tipplers, Ground & Track Hoppers, Stock yards Crushing plants, vibrating
screens, Single / twin boom stackers, wheel on boom and Blender declaimers, Stacker –
cum – Reclaimed (SCR). In VSP peripheral unloading has been adopted for the first time
in the country. Coking coals are received through conveyors directly from M/s
Gangavaram Port Limited to Coal Stock Yard.

4.2 Coke ovens & Coal Chemical Plant (CO&CCP)

Blast Furnaces, the mother units of any Steel plant require huge quantities of strong, hard
and porous solid fuel in the form of hard metallurgical coke for supplying necessary heat
for carrying out the reduction and refining reactions besides acting as a reducing agent. At
VSP there are Four Coke Oven Batteries, 7 Metre tall and having 67 Ovens each. Each
oven is having a volume of 41.6 cu. metre& can hold upto 31.6 Tonnes of dry coal charge.
There are 4 Coke Dry Cooling Plants (CDCP) each having 4 cooling chambers. Nitrogen
gas is used as the Cooling medium. The heat recovery from nitrogen is done by generating
steam and expanding in two back pressure turbines to produce 7.5 MW each.

The Coal chemicals such as Benzoyl (& its products), Tar (& its products), Ammonium
Sulphate etc. are extracted in Coal Chemical Plant from C.O. Gas. After recovering the
Coal chemicals, the gas is used as a by-product fuel by mixing it with gases such as BF
Gas, LD Gas etc. A mechanical, biological & chemical treatment plant takes care of the
effluents.

26
 4.3 Sinter Plant
Sinter is a hard & porous ferrous material obtained by agglomeration of Iron Ore fines,
Coke breeze, Lime Stone fines, Metallurgical wastes viz. Flue dust, mill scale, LD slag etc.
Sinter is a better feed material to Blast Furnace in comparison to Iron Ore lumps and its
usage in Blast furnaces help in increasing productivity, decreasing the coke rate &
improving the quality of Hot Metal produced. Hot Sinter discharged from Sintering
machine is crushed to +5 mm - 50 mm size and cooled before dispatching to Blast
Furnaces. Parameters of Sintering Machines are

 Total area: 312 Sq. metre

 Effective Sintering area: 276 Sq. metre
 Sinter bed height: 500 mm
 Sinter Machine Capacity: 400 T P H each

The dust laden air from the machines are cleaned in scrubbers & electrostatic precipitators
to reduce the dust content to 100 mg/ m3 level before allowing to escape into the
atmosphere and thus helping in maintaining a clean & dust free environment.

27
4.4 Blast Furnaces
VSP has two 3200 cu. metre Blast Furnaces (largest in India) equipped with Paul worth
Bell less top equipment with conveyor charging. Rightly named as "Godavari" &
"Krishna" after the two rivers of AP, the furnaces will help VSP in bringing prosperity to
the state of Andhra Pradesh. Provision exists for granulation of 100% liquid slag at blast
furnace cast house and utilization of blast furnace gas top pressure (1.5-2.0 atmospheric
pressure) to generate 12 MW of power in each furnace by employing gas expansion
turbines. The two furnaces with their novel circular cast house and four tap holes each are
rated to produce 9720 tonnes of Hot Metal daily or 3.4 Million Tonnes of low sulphur Hot
Metal annually.

28
 4.5 Steel Melt Shop
VSP produces steel employing three numbers of top blown Oxygen Convertors called LD
Convertors or Basic Oxygen Furnaces / Convertors. Each convertor is of 133 cu. Metre
volume, rated to produce 3 Million Tonnes of Liquid Steel annually. Besides Hot Metal,
Steel Scrap, Fluxes such as calcined lime or Dolomite form part of the charge to the
Convertors.

Different grades of steel of Superior quality can be made by this process by controlling the
Oxygen blow or addition of various Ferro alloys or special additives such as FeSi, FeMn,
SiMn, Coke Breeze, Aluminium etc. in required quantities while liquid steel is being
tapped from the convertor into a steel ladle. Convertor / LD Gas produced as by product is
used as a secondary fuel.

4.6 Civil Engineering Department (CED)

1. Inspection of all Civil Buildings in the plant.
2. Attending Civil Maintenance jobs in various zones of the plant
3. Road repair works
4. Laying of additional road RCC / BT Roads
5. Attending special jobs during Capital Repairs / Shutdowns.
6. Repainting of Equipment’s in various zones of the plant
7. Horticulture / Development of parks
8. Cleaning of storm water drains / Box drains, diversion channel
9. Upkeep of Toilets in buildings / shops of the plant
10. Preparation jobs for VIP visits
11. Ash Pond maintenance jobs
12. Survey jobs
13. Special jobs: Core cutting in concrete structures, Pressure grouting, Roof treatment, Anti
14. terminate treatment etc.

29
15. Civil jobs for infrastructure: Scooter sheds / Rest rooms, office room extension etc.
16. Security related jobs: Maintenance of Boundary wall Watch towers, peripheral road

4.7Traffic Department
VSP has a well-planned rail network with Yards / Stations, Locos and Wagons which are
maintained by Traffic department. For the convenience of Operational activities, the rail
network is divided into six yards / stations and each yard has specified functions attached
to it. VSP has the distinction of having peripheral yard concept to improve the turn – round
time of wagons and to avoid duplicating of the rail facilities by Railways and VSP. All the
Raw-material rakes are delivered by Railways directly at Pre-tippler lines. The main
functions of Traffic department are to carry out in-plant rail movements like handing over
of empties to Railways after tippling, transportation of Hot metal from BFs to SMS /
PCMs, taking over of empty rakes from Railways and distribution to various loading points
and after loading of the finished products and weighment handing over of load rakes to
Railways.

4.8 Works Contracts Department

Processing for and obtaining administrative approval on receipt of contractual proposal
from indenting departments, tendering and awarding of work. Convening tender
Committee meetings and preparing recommendations for awarding work. Preparing COM
/ Board Note for decisions at those forums. Participating in Claims and Arbitration
proceedings and legal cases pertaining to contracts. Registration of agencies under various
categories & classes of works regularly.

4.9Water Management Department

Water Management Department basically caters water needs throughout the plant for
various processes of making Steel and drinking water inside the plant and Township. It
consists of 30 pump houses, 8 treatment plants, 4 Overhead tanks, 22 cooling towers, 10
sewage pump houses, STP & ETP. Its prime functions are as follows:

 Receipt of Raw water from State Government, Treatment and distribution of Makeup
water and drinking water in & Township.
 Operation and Maintenance of Various Recirculating Pump houses, cooling towers,
Treatment plants, pipe line tunnels etc.
 Maintenance of underground Makeup and Fire & Drinking water network.
 Operation and Maintenance of Effluent Treatment Plant & Sewage treatment plants and
pump houses.
 Recovery of township sewage water through Ultra Filtration process and reuse in plant as
make water.

30
 4.10 Budget plan and control
 Identification of Budget requirement under various heads.
 Control of the Budget and Spares, Consumables & Raw Materials Inventory.

4.11 Systems and Procedures

 Streamlining the contract management system to ensure consistency of approach and
adoption of sound principles of contract management.
 Monitoring pollution control activities of the Plant and interaction with the State and
Central Pollution Control Board.

4.12 Rolling Mills

Blooms produced in SMS-CCD are shaped into products such as Billets, rounds, squares,
angles (equal & unequal), Channels, I-PE Beams, HE Beams, Wire rods and
reinforcements bars by rolling them in three sophisticated high capacities, high speed, fully
automated rolling mills, namely Light & Medium Merchant Mills (LMMM), Wire Rod
Mill (WRM) and Medium Merchant and Structural Mill (MMSM).

4.13 Light& Medium Merchant Mill (LMMM)

LMMM comprises two units, namely Billet Mill and Bar Mill. The Billet Mill is facilitated
with 2 Walking Beam Furnaces and it is a continuous seven stand mill. In the Billet Mill
250 x 320 mm size blooms are rolled into Billets of 125 x 125 mm size. Billets are
supplied from this mill to Bar Mill of LMMM, Wire Rod Mill and for sale. Bar Mill is
facilitated with temporal heat treatment technology, automated bundling facilities and high
degree of automation. Bar Mill is a 2 strand continuous mill having a capacity of 7,10,000
tons per annum and produces rounds and rebar’s of various sizes from 16 mm to 36 mm.

31
4.14 Wire Rod Mill (WRM)
Wire Rod Mill is fully automated & sophisticated mill. The billets are rolled in 4 strand,
high speed continuous mill having an Annual Capacity of 8,50,000 Tonnes of Wire Rod
Coils. The mill produces rounds in 5.5 - 14 mm range and rebars in 8, 10 & 12 mm sizes.
The mill is equipped with standard and Retarded Stelmor controlled cooling lines for
producing high quality Wire rods in Low, Medium & High carbon grade meeting the
stringent National & International standards viz. BIS, DIN, JIS, BS etc. and having high
ductility, uniform grain size, excellent surface finish.

4.15 Medium Merchant & Structural Mill (MMSM)

This mill is a high capacity continuous mill. The feed material to the mill is 250 x 250 mm
size blooms, which is heated to rolling temperatures of 1200 °C in two walking beam
furnaces. The mill is designed to produce 8,50,000 tons per annum of various products
such as rounds, squares, flats, angles (equal & unequal), T bars, channels, IPE beams I HE
beams (Universal beams)

32
4.16 Engineering shops & Foundry (ES & F)
Engineering Shops & Foundry department is set up to meet the requirements of spares,
repair of assemblies and reclamation of various jobs of different departments. This
complex consists of

1. Central Machine Shop (CMS)

2.Steel Structural Shop (SSS)

3.Foundry

4. Forge Shop (FS)

5.Utility Equipment Repair Shop (UERS).

4.17 Central Machine Shop (CMS)

In Central machine shop, various spares like Gears, Shafts, Crusher liners, hammers,
machined castings and fabricated jobs are made. In addition to the manufacturing spares,
assembly and repair jobs like gear boxes, Crusher, bearing housings, stands of SMS are
taken up. Over 100 major machines including lathes, milling, Plano milling, boring,
slotting, shaping, grinding etc. are available to take up machining of spares. 2 presses of
630 ton, 315 ton and dynamic balancing machine of 25 ton capacity, are provided at CMS
for repair of assemblies.

33
4.18 Steel Structural Shop (SSS)
At Structural shop of ES&F, structural jobs of various departments like coke bucket, ladle,
SRC body, Wagons, Shells, ducts etc. are being fabricated or repaired as per the
requirement of departments. The equipment’s available are Bending machine-25mm
capacity, Shearing machine25mm capacity, CNC profile gas cutting machine, welding
machines, gas cutting sets, other tools and tackles.

4.19 Foundry
In Foundry, castings of Iron, steel and non-ferrous are produced based on the projection of
customer departments. 8-ton Arc furnace, 2nos of 5ton Induction furnaces and 1-ton
crucible furnace for non-ferrous jobs and sand plant for preparation of sand for moulds are
available for making castings. Major jobs like Hot metal runners of 10 tons weight, Bottom
funnel (5 ton), Emergency containers (7 ton), lower mantle and Bowl liners(3 tons each)
etc are produced.

4.20 Forge Shop (FS)

In Forge shop, preparation of raw materials for shafts, coupling flanges, gears etc and also
of forge shapes such as crusher hammer heads, V -hooks, drill rods with the help of 0.5
ton, 2 ton, 3 ton pneumatic hammers, manipulators, heating furnaces is carried out.

4.21 Utility Equipment Repair Shop (UERS)

In Utility Equipment Repair Shop, repair of ventilation equipment’s, valves, fans and
impellers is carried out. equipment like shearing machine, bending machine, presses, lathes
etc. are provided to take up different repair and manufacturing activities.

4.22 Environment Management Department

(EnMD) The environmental parameters related to ambient air, stacks, effluents, work-zone
environment, sound, waste management, sub-soil water, marine water and the fugitive
emissions (from the coke oven batteries) are regularly monitored by the Environment
Management Department (EnMD) as stipulated under consent conditions and statutory
orders from APPCB/CPCB/MoEF. All these monitoring activities are carried out as per
frequency prescribed by the APPCB/CPCB/MoEF and compliance with all norms is
ensured.

4.23Field Machinery Department (FMD)

FMD deals with operation and maintenance of Heavy Earth Moving Equipment, Material
Handling Equipment like Cranes, Fork lifts, Tractor trailers and Vehicles. Our equipmentis
utilized for material transportation, maintenance jobs, housekeeping etc. FMD is one of the
critical service department, whose services are directly involved in operational activities at
many production departments like Coke Ovens, Sinter Plant, Blast Furnace, Steel Melting

34
 Shop etc. In addition to the above, vehicles and fire tenders of VSP / CISF are maintained
by FMD

4.24Information Technology (IT)

 Formulation of Organizational IT-Policy, IT-Security Policy and IT-Vision.
 Identification of IT enabled projects for various processes and implement them.
M & CR

Functions:

 Modernization of major plant equipment (BF-1&2, SMS Converter shop, Sinter machines-
1&2 etc.) through “Revamping, Up gradation and Capital repairs” as per sustainability and
roll on plan of VSP.
 To execute the modernization of major plant equipment with support of works department
and concerned contractor / agency.

Duties:

 To finalize technology and design in construction with D&E, works department for
modernization or major plant equipment.
 To finalize contracts in consultation with project contracts department for modernization of
major plant equipment.
 To execute the modernization of major plant equipment with support of works department
and concerned contractor / agency.

4.25Production, Planning and Monitoring Department (PPM)

 Formulation of Annual and Monthly Production Plan.
 Analysing Plant performance against targets on a periodic basis and put up for information.
 Formulation of techno – economic norms and reviewing the same against targets
periodically.
 Raw material requirement projection of Coal, Ore and fluxes.
 Preparation of MIS on inward and outward traffic w.r.t. incoming raw materials and
outward dispatches.

4.26Quality Assurance and Technological Development (QA &TD)

The QA & TD dept. has been set up to take care of activities pertaining to Quality Control
of Raw Materials, Semi-finished products and finished products. The QA & TD labs are
provided at major department like CO&CCP, SP, BF, SMS, Rolling Mills etc., in addition
to Central Laboratory. The department monitors the process parameters for production of
quality products. QA & TD carries out analysis, testing and final inspection including
spark testing of finished products and assigns grades to them.

35
 4.27 Research and Development (R & D)
Department started functioning from 2005 in RINL. This department takes up various
improvement projects related to the areas given under:

 Pursuing innovative and path breaking technologies to create a vibrant, viable and
sustainable future for RINL
 Developing technologies to enrich raw materials of lean variety
 Product development to meet ever increasing demands on steel quality
 Meeting the challenges of energy and environment
 Create knowledge through basic research in the area of Iron and Steel
 Improve the technological capability of the human resources through interventions like
exposure to information, advanced knowledge and new technologies

R&D projects are carried out internally and jointly with the help of external agencies viz.,
research organizations and academic institutions like IITs, NITs, CSIR laboratories,
Universities etc.

4.28Thermal Power Plant

The average power demand of all units of VSP when operating at full capacity will be
around 230 MW. The captive Generation capacity of 286.5 MW is sufficient to meet all
the plant needs in normal operation time. In case of partial outage of Captive Generation
Capacity due to break down/ shutdown/ or other reasons, the short fall of power is availed
from State Grid. The Captive Generation capacity comprises of

 TPP: 247.5 MW (3 X 60 MW + 1 X 67.5 MW)

 Back Pressure Turbines (C&CCD) : 2 X 7.5 MW
 Gas Expansion Turbines (BF) : 2 x 12 MW

Power plant also meets the Air Blast requirement of Blast Furnaces through 3 Turbo
Blowers each of 6067 NM3/Min capacity.

In addition to the above, Power Plant also supply process steam, DM Water, Chilled
Water, Soft Water to various units of VSP.

4.29 Utilities Department Utilities Dept.

1. Air Separation Plant, designed to produce and meet the consumer requirements of gaseous
oxygen, Nitrogen and Argon through pipe lines and through gas cylinders.
2. Compressor Houses – 1 & 2, designed to produce and meet the consumer requirements of
Plant air and Industrial grade dry air.
3. Chilled water plants – 3 & 4, designed to produce chilled water for meeting the consumer
air conditioning requirements.

36
4. LPG is being procured and distributed through pipe lines for CCD & Engineering Shops
and for maintenance agencies through cylinders. DA gas is being procured and distributed
for Billet cutting at MMSM & for critical maintenance agencies through cylinders.

4.30Medical & Health Services (M & HS)

The Medical & Health Services Division of RINL consist of Visakha Steel General
Hospital (VSGH) & Peripheral Units viz. Pedagantrya Health Centre (PGHC), Health
Centre – II, Occupational Health Services & Research Centre (OHSRC), Emergency Unit
– I & II and Hospitals in Mines – Jaggayyapeta Limestone Mines and Madharam Mines.
The special features of Visakha Steel General Hospital are:

 Full-fledged Modern American Designed ICU and MBU capable of treating 6 patients at a
time
 Full-fledged Modern Radiology with Central A/c systems
 Well-equipped Path. Lab with Blood bank facility
 Cluster type Wards & Casualty with Central Nursing Station
 Modern Operation Theatre compels with Shadow less cold lights and 100% bacterial free
A/c system

4.31Corporate Strategic Management (CSM)

CSM is a “think tank” of the organisation. The Department is engaged in formulation of
VMO
(Vision, Mission & Objectives) of the organisation and developing the strategy to achieve
VMO. It
has various wings which inter-alia includes Knowledge Management Cell (KM Cell). It
has also
developed the Corporate Plan of RINL. It takes up strategic tasks of the organisation.

4.32Directorate of Projects
Design & Engineering Department (D & E)
 Liaising with Consultants and Government Authorities in connection with designs,
specifications, approval of drawings and liaising work for various types of clearances.
 Preparation of drawings, design and specification for AMR and Non-AMR jobs.
 Assisting indenting departments in technical discussion with parties and preparation of
technical recommendation.
 Layout clearances of various facilities coming in the Plant and Township.
 Operation of Consultancy contracts.

Construction Department
 Exercising supervision of work at site both for quality and quantity checks.
 Preparation of contractor’s bills, processing of extra items and closure of contracts.
 Liaising with suppliers, MM department, Design & Engineering Department and Stores in
connection with progress of work at site.

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 Arranging PAT/FAT will all concerned departments like works, design, consultants and
 suppliers in terms of contract and handing over the unit to works department for operations

Contracts Department
 Awarding of contract from the point on receipt of administrative approval from indenting
departments.
 Conducting commercial discussions with parties.
 Arranging Tender Committee meetings and preparing recommendations for awarding
work.
 Preparing COM/Board Note for decisions at those form.
 Participating in claims and arbitration proceedings.

Project Monitoring Department

 To monitor the physical and financial progress of all the works executed by Construction
department.
 To monitor the progress of works executed by D&E as well as Contracts department.
 Preparation of various types of reports for information of Government and different level
of Management.
 Interaction with departments and consultant for updating the schedules and networks for
Project Monitoring.
4.33 Training Measures
 The needs of induction training, skill up gradation, unit training, computer related training,
refresher training, foreign training, faculty development etc are attended by training and
development centre while management development and attitudinal development are taken
care at the centre for HRD.
 The training in specialized areas like safety, fire prevention, occupational health, etc is also
taken up by departments specializing in respective fields.
 It is the initiative of the HRD group to provide In-house training programs.
 In-plant training for management students.
 Employees are sent to other steel plants on short duration tours to find solutions to the
various issues facing the company.
 Employees are also sent to suppliers manufacturing units’/training institutes to get
specifictraining in identified areas.
 The T&D department identifies the development needs of employees on regular basis
and provide necessary training and continually monitors effectiveness of the training.
 It fulfils its social obligations by providing training to students of educational
institutionsand to trainees of other organizations.
RINL believes that the employees are its assets and strives to realize their potential in full
for mutual advantage. The human resource development involves development of the
employee as awhole.
 In-house Training Programs.
 Nominations to external Training Programs.

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 Organisation Research, Employees satisfaction surveys and voice of employees Index
 Organisation development
 Membership with professional bodies
 Performance Appraisal for executives
 Human Resource Information System
 In- plant training for management students
 Lectures by eminent personalities
 Corporate presentations
 Interactions with professionals,academicians and consultants
 Knowledge management
 Initiatives in “Six Sigma”
 Emancipation of women through WIPS, Women Development Programs
 Thrust on “Samalochana”
 Pursuit of Business Excellence Model
 Maintaining harmonious industrial relations where entire workforce works as a well
knitteam for the progress of the company.
 Statutory welfare measures like canteen facilities, baby crèche, first aid facilities,
water coolers, leave, maternity leave, gratuity and workmen’s compensation
 Non- Statutory welfare measures like facilities for education, scholarships,
medicalfacilities, housing facilities, work dress, vehicle advances to employees, house
buildingadvances and various other motivational schemes
4.34HRD Philosophy in Visakhapatanam Steel Plant
 Employees of the organization are greatest and most valuable resources.
 Who le o n the one hand, HRD should appropriately harness t he
e m p l o y e e potent ial for the attainment of the company object ives, the
company on the other, as its corporate responsibility, should create an enabling climate
where inh u m a n t a l e n t g e t s t h e b e s t o p p o r t u n i t y f o r s e l f -
e x p r e s s i o n , a l l r o u n d development and fulfilment.
 People are more than mere resources and therefore it will be the
company’ssincereendeavour to treat people with all the respect and that is warranted
when employees are seen as more mere instrumentalities.
 HRD as a management function will be given a place of strategic priority, along wit h
funct ion like production, maintenance, materials on finance in the overall
scheme of management action in the company.
 HRD does not refer to training alone, nor is it just a new name for
training. InR I N L / V S P H R D r e f e r s t o c r e a t i v e a n d i n n o v a t i v
e i n i t i a t i v e s i n s e v e r a l management functions for the development and
growth of employees
 HRD should eventually be a core philosophy of all management actions and
should not remain merely a departmental / sectional activity.

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 A l l f u n c t io na l a nd d i v i s io n a l h e a d s r e s p o ns i b l e fo r v a r io u s a c t i v it i e s
o ft he c o m p a n y w i l l i m b i b e t he H R D s p i r it a nd s u it a b i l it y i n t e g r a t e H R
D i nt o t he ir plans, decisions and actions.
4.35 Performance Appraisal System

4.36 Financial highlights of the organization financial Ratio Analysis

The traditional financial statements comprising the balance sheet and the profit and loss
account are proving the information related to the financial operation of the firm. They
provide some extremely useful information that mirrors the financial position on a
particular date in terms of the structure of assets, liabilit ies and owner’s equit y and
so on. The profit and loss account shows the result s of operations during a
certain period of time in terms of the revenues obtained and the cost incurred
during the year. Therefore, much can be learnt about a firm from a careful
examinat ion of its financial statements. Users of financial statements can get further
insight about financial strengths and weaknesses of the firm if they properly
analyse informat ion reported in these statements. Management should be
particularly interested in knowing financial weakness of the firm to take
suitable corrective actions. The future plans of the firm should be laid down in view of the
firm’s financial strengths and weaknesses. Thus, financial analysis is the starting point for
making plans, before using any sophisticated forecasting and planning procedures.
Understanding the past is a pre-requisite for anticipating the future

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4.37 Future plans for growth of the organisation
In line with the vision in National Steel Policy envisaging 110 MT steel by 2019-20, Vizag
Steels also planning to expand its capacity. Considering the buoyancy in domestic steel
market for long products, which is the product mix of VSP and the high acceptance of
VSP’s brand image in the market, an expansion plan has been proposed. The expansion
plan of doubling the capacity of the plant has been cleared in a record time of 10 months
and the entire Vizag Steel collective is totally geared up for completing the expansion in
the stipulated 36 months. The consultant is in place and the funds are in hand. The
expansion should give a strong footing for VSP’s growth. The expansion programme is
progressing well as per plans and the present focus is on creating an enabling infrastructure
such as roads, water, power etc., for smooth execution. Also thrust icon finalization of the
specifications and placement of orders. To leverage from our brand leadership in the long
segment category, expansion has been cast to enhance volumes in the long product
category. A seamless tube mill is also being envisaged to reduce the dependence on

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 imports in view of the huge requirement by the oil and gas sector. The envisaged
expansion of the Plant’s capacity by 2008-09 is as below:
1. Hot Metal - 6.50 Mtpa
2. Liquid Steel - 6.30 Mtpa
3. Saleable Steel - 5.72 Mtpa

The following major facilities are proposed to be added under expansion stage.

1.Blast Furnace - 3800 M

3- 1 No.
2.Sinter Plant
a.Sinter Machine No.3 – 400 M
2- 1 No.3.
3. Steel Melt Shop No.2:
a.LD Converters 150 M
3.Cap –
2 Nos. b.6 Strand Billet Casters - 2 Nos.c . 6 S t r a n d R o u n d C a s t e r - 1 N o .
d.Secondary Steel Making Facilities
4.Rolling Mills:
a . W i r e R o d M i l l N o . 2 - 6 0 0 , 0 0 0 T P Y b.Special Bar Mill - 750,000
TPYc . S t r u c t u r a l M i l l - 7 0 0 , 0 0 0 T P Y d . S e a m l e s s T u be P l a n t -
3 0 0 , 0 0 0 T P Y VSP will enhance the volume of production in long products segment
in view of Brand image. In order to diversify the product mix and help reduce the
dependence on import of pipes in oil and gas sector, a seamless pipe mill is envisaged.

1 . W ir e R o d ( P l a i n ) - 5 . 5 m m t o 2 0 m m i n c o i l s

2.Special Bars (Plain) - 16 mm to 40 mm – in coils and straight lengths

3.Structurals

4.Sea mle s s p ip e s - 139 mm t o 365 mm

5 . S e m i s - B l o o m s , B i l l e t s The Project is estimated to cost Rs. 8,259 Crores

(Base IV Qr.2004)

4.38Advantages and drawbacks of the organization

Advantages:
Tall organisation structure helps in easy flow of command. Authority and responsibility
can be delegated easily as it is a simple structure. Chances of rumours are less as the
organisational structure is straight.
Disadvantages:
Flow of command is time consuming which can lead to delay in decision making.
Authority to take the decision is at a very high level.

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 CHAPTER 5
FINDINGS, CONCLUSION
AND
RECOMMENDATIONS

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 5.1 FINDINGS

The association ponder directed at RASHTRIYA ISPAT NIGAM LIMITED Company has
uncovered the accompanying discoveries as state under fitting heads:

a) The investigation uncovered the association structure of the organization, which

has been talked about in detail in Chapter-3. The significant discoveries have been
expressed beneath:

i. Rashtriya Ispat Nigam Limited is one of the biggest steel makers in the nation with a
work power of 16000 representatives.
ii. Those 16000 representatives were ordered under various divisions dependent on their
assignment performed.
iii.Therefore, the structure authoritative structure pursued by them was line and staff
hierarchical structure.

b) An industry-wide examination was performed utilizing Porter's five powers

display, which has been portrayed in Chapter-1. The real discoveries of the
examination are:

i. The boundaries to the passageway to the business are medium. For another set up there
are severe government arrangements, for example, Regulatory clearances, portion of iron
metal mines and land acquisitions.
ii. Dealing intensity of providers is low since it has incorporated steel making limit.
iii. The dealing intensity of the purchaser is low since this is one of the significant crude
material supplier to the next fundamental ventures. One of the market chiefs in long steel
items.
iv. In this Aluminium, plastic, glass, composite materials were satisfying the comparable
needs to the huge purchasers so it very well may be said that the danger of the substitutes.
v. Industry contention or the challenge extends between medium to high. It is high in
household steel industry as interest still surpasses the supply.

c) An investigation of the organization's interior condition was performed utilizing

SWOT examination, as talked about in detail in Chapter-2. The significant
discoveries are of the investigation are:

i. The principal Indian steel organization to receive vitality the board standard for
methodical improvement in vitality productivity
ii. Single area organization Only long items presented to recurrent markets.
iii. Proceeded with accentuation on framework building and a few Greenfield extends
under execution will support development.
iv.. Ascending in expansion rate and increment in loan costs by RBI and so forth
influences the rate of development.

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d) Also, an examination of the organization's outer condition was directed utilizing
PEST investigation, subtleties of which can be found in Chapter-2. The significant
discoveries of the activity have been expressed underneath:

i. With the developing business the legislature has expanded the business charge from the
15% to 20 where as 75% FDI is permitted in the business.
ii. Under the different economies plots there is authorization ahead of time permitting plan
which permits the obligation free imports of crude material for fares.
iii. Because of working conditions, individuals which are utilized in the steel business
faces numerous medical issues which are hopeless.
iv. Essential advances are utilized in the creation procedure as are fundamental, acceptance
heater and electric heater which are obsolete in the nature.
v. Vizag steel is building up the Ultra-Low Carbon steel where there will be decrease in the
natural misfortune
vi. The administration is going to give more consideration in the wellbeing approaches of
the representatives which are working with the steel business

e) Lastly, the business procedures and capacities have likewise been contemplated
and depicted in detail in Chapter-4. The significant discoveries are:

i. VSP has an all-around arranged rail coordinate with Yards/Stations, Locos and Wagons
which are kept up by Traffic division.
ii. FMD manages activity and upkeep of Heavy Earth Moving Equipment, Material
Handling Equipment like Cranes, Forklifts, Tractor trailers and Vehicles.
iii. Handling for and getting managerial endorsement on receipt of legally binding
proposition from indenting divisions, offering and granting of work is the essential
capacity of Works Contract Department.
iv. HRD as an administration capacity will be given a position of vital need, alongwith
work like generation, upkeep, materials on fund in the overallscheme of the executive’s
activity in the organization.
v. The T&D office distinguishes the advancement needs of representatives on ordinary
premise and give essential preparing and consistently screens adequacy of the preparation.
vi. Structure and Engineering Department Liaising with Consultants and Government
Authorities regarding designs,specifications, endorsement of illustrations and liaising work
for different kinds of clearances.
vii. Innovative work Department Pursues inventive and way breaking advancements to
make a lively, feasible and economical future for RINL.
viii. IT Department executes the modernization of real plant gear with help of works
division and concerned temporary worker/organization.

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5.2 Conclusion:

Rashtriya Ispat Nigam Limited is a main steel fabricating organization in India. The
organization is completely incorporated iron and steel creator which produces both
fundamental and explicit steels for local development, designing, control, railroads, car and
protective businesses. This organization manages gigantic measure of fares. RINL is one of
the significant iron and steel provider to the railroads part. It is an enormous benefit
making organization.

The organization is situated in the region of 33000 sections of land which has all the quick
pace innovation and procedures as referenced beforehand. RINL is anticipating cut it
account costs by updating its innovation with the goal that it could create more than what
it's at present delivering. The significant incomes were created by having contracts with the
Government and furthermore gigantic fares.

5.3 Recommendations

The accompanying proposals will improve the money related position of the VSP.

1. Creation

1) Need for nonstop up degree of innovation for improving the processes.

2) Effort ought to be made at cost investment funds especially in extras and energy
consumption
3) Using the gaseous petrol stores of KG bowl, Hot metal productioncapacity can be
upgraded with the present BF office with negligibleinvestment.

2. Money

Improving the money related influence proportion for the better returns.

3. Work force

1) Rationalization of existing labour with successful preparing for future expansion of the
plant.
2) Improving effectiveness through better HRD programs.
3) Providing better inspiration.
4) Striving towards turning into the most picked boss.

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4. Promoting

1) Continuously observing the indigenous deal, send out deal proportion tocapture the best
of business sectors.
2) Increasing the net acknowledgment by selling in the most gainful district.
3) Identifying new markets and new utilization of the company's product.
4) Improving acknowledgment by distinguishing esteem added items andproviding input to
generation division.
5)Value included items (high esteem things) are to be delivered as opposed to offering
semi-completed items so as to expand overall revenue.

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