Corporate Report

On
Bhushan Power & Steel Limited (BPSL), Chandigarh

MBA (Dual)
(MASTER OF BUSINESS ADMINISTRATION)

Submitted To: - Submitted By:-

Mr. AKSHAY PATIDAR ADITYA SHARMA
(Asst. Professor, JNU, Jaipur) MBA (D) II
 Preface

It is definitely true that the world outside your house is many time different from what you have
been preceding in the same way. It is possible in that theoretical knowledge acquired by in the
classroom may differ from the practical knowledge. With a view to spread awareness of the
practical implication of what all helping people in industries during the remaining period. The
success of any organization depends upon the efficient manpower working in it. The meters
mention is based on information provided by the industry.
 Acknowledgement

Words are Indeed Inadequate to convey the deep sense of gratitude to all those who have helped
me in completing this project to the best of my ability. Being a part of this project has certainly a
been a unique and very productive experience on my part.
I would like to express my special thanks to express my gratitude to everyone who supported me
throughout the course of this MBA industrial project. I am thankful for their aspiring guidance,
invaluably constructive criticism and friendly advice during the project work. I am sincerely
grateful to them for sharing their truthful and illuminating views on a number of issues related to
the project.

I express my warm and special thanks to Prof. Rajesh Mehrotra (Director of SBM) and Mr.
Akshay Patidar (Supervisor). I am very grateful to all the people who provided me the facilities
being required and conductive conditions for our MBA project.
Thank you.

ADITYA SHARMA
 INDEX

S. no. Content Page no.

1 Introduction 5

2 Company Profile 6

3 Product 7

4 Vision & Mission 8

5 Organizational Structure 9

6 Environment & CSR 12

7 Swot Analysis 15

8 Findings & Suggestion 17

9 Brand equity 19

10. Bibliography 20
 INTRODUCTION

In 2018, Tata Steel acquired Tata Steel BSL Limited (formerly known as Bhushan Steel Limited)
through its wholly owned subsidiary.

Tata Steel BSL Ltd is one of the prominent players in the Indian Steel industry. Backed with
more than 27 years of experience, they are now India's 3rd largest Secondary Steel Producing
Company with an existing steel production capacity of 5.6 million ton per annum.

As one of the largest integrated steel players in India, Tata Steel BSL is a source for vivid variety
of products such as Hot Rolled Coil, CRCA, CRFH, Galvanized Coil and Sheet, Galume Coil
and Sheet, Color Coated Coils, Color Coated Tiles, High Tensile Steel Strips, Hardened &
Tempered Steel Strips, Precision Tubes, HFW/ERW Pipe (API Grade),3LP Coated Pipes, Billets
and Sponge Iron.

Being amongst the prime movers of the technological revolution in Indian Cold Rolled Steel
Industry, Tata Steel BSL has emerged as the country's largest and the only Cold Rolled Steel
Plant with an independent line for manufacturing Cold Rolled Coil and Sheet up to a width of
1700mm. Along with this they also have a Galvanized Coil and Sheet line up to a width of 1350
mm.

In addition, strengthening us to grow from pillar to pillar is our robust network of sales and
marketing units across Indian continent and other countries helping us reach our global customer
base.

At Tata Steel BSL, they are living tomorrow today; because the endeavor to a brighter future
starts from today. In superior community building, in harnessing safety, by nurturing the
environment and by adopting world-class technology for producing outstanding products, Tata's
resilient approach to its impeccable vision makes it a global Integrated Steel producer.
 Company Profile

Bhushan Power & Steel Limited (BPSL), is a fully integrated 3.5 Million TPA Steel Making
Company having turnover of INR 11,288 Crores (USD 1,858 Million) FY14.

The Company is certified to ISO 9001:2008 & TS-16949 Quality Standards and ISO 14001:2004
Environment Management Standards.

BPSL is a leading manufacturer of flat and long products and have state-of-the-art plants at
Chandigarh, Derabassi, Kolkata and Orissa in India. These plants manufacture value added
products covering entire steel value chain right from Coal Mining to manufacturing Pig Iron,
DRI, Billets, HR Coils, CR Coils, GP/GC Sheets, Precision Tubes, Black Pipe/GI Pipe, Cable
Tapes, Tor Steel, Carbon and Special Alloy Steel Wire Rods and Rounds conforming to IS and
international standards.

The Company have successfully commissioned a 3.5 Million TPA Greenfield Steel and Potheyr
Plant in Orissa with HR Coil making facility - First in Private Sector in the State of Orissa. For
this plant, technology and equipments theyre sourced from leading world-renowned companies’
viz., Lurgi, ABB Ltd., SMS Siemag, SMS Meer Danieli, LOI Tenova, Kocks etc. BPSL has a
wide marketing network in both India (comprising 35 sales offices) and abroad for selling its
value added product range.

The rock-solid foundation combined with continuous up gradation and innovation has enabled
the Company to surpass its goals constantly. BPSL's end-to-end portfolio has enabled it to offer a
wide spectrum of products at superior quality consistently surpassing customers' specifications.
In addition to export thrust, BPSL cater to the domestic steel requirements of fast-growing
sectors like automotive, white goods, construction / infrastructure, furniture, fasteners,
telecommunication, potheyr etc.

With a view to make its presence in a big way in Special Alloy Steel Long Product business,
BPSL has commissioned a most modern state of the art Wire Rod-cum-Bar Mill and is
commissioning a host of downstream finishing facilities viz., Heat Treatment facilities, Bright
Bar manufacture etc.
 INDUSTRY VIEW

Fig. Accumulation of finished products.

 VISION and MISSION

VISION:-
 Evolving into a total integrated steel producer.

 To provide high standards of quality.

MISSION:-
 To achieve clear identity and leadership globally in steel production and distribution by
integration of complete chain of production starting from captive iron ore to end user Steel
products.
 ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTORS

PRODUCTION SALES
MANAGER MANAGER

SALES
TEAM LEADER WORKERS
EXECUTIVES
 ENVIORMENT AND CSR

At TATA they care for the environment and believe that our tomorrow is secure if they give
back to nature. Be it our zero discharge policy or our fundamental rule of reduce-reuse-recycle;
with efficient double checks, air quality control systems and rain water harvesting they make
sure of optimum use and minimal wastage of the natural resources.

WASTE MANAGEMENT

Good waste management characterizes of handling, monitoring, treating, reuse and proper
disposal of the residual. At BSL, they thoroughly follow the appropriate steps to achieve the
desired output for solid waste management. They have installed state-of-art effluent treatment
technologies for treatment of effluent generated in different production units. Quality of treated
effluent is maintained as per norms and reused within plant complex in various purposes. No
effluent is allotheyd to go out and thus zero discharge status is maintained. Sewage treatment
plants have been established for treatment of sewage generated from colonies and offices.

Legal compliance and satisfying needs & expectations of Customers.

 Utilization of waste gases:

Waste gases generated from blast furnace and coke oven are used for potheyr generation to
conserve energy

 Plastic waste management:

Plastic waste is sent to ACC for using as fuel

  Incinerator:

An incinerator has been established to manage municipal solid waste generated in the
township

 Solid Waste Management:

From a steel industry variety of solid wastes are generated. In order to handle all these solid
waste they have to adopt eco-friendly methodology to ensure statutory compliance and keep
environment pollution free. Fly ash is disposed into mine void and fly ash bricks are made.
Slag from blast furnace is given to cement plant for cement making. Many other wastes which
are generated in various units are sent to sinter plant to use in sinter making

EMPLOYEE WELLFARE
At Tata Steel BSL, they are one big family unit of 10,000+ workforces living in prosperous
communities across our three plants; they always make sure that with us they are at their most
comfortable and blissful.

Our Odisha plant holds the most number of households. The modern world class residential
facility consists of residential totheyrs, villas, a community centre, banquet hall, playgrounds, a
supermarket and other shops. With almost same facilities also at our Khopoli plant, the housing
facilities are at a safe distance from the main plant area.

Regular health camps and an in-house doctor at the facility are also made available to the
residents. Regular entertainment events are organized for the residents and many other
community building activities are promoted.
 YOUTH and SPORT

BSL provides sport kits to youth in to promote sports & competitive spirit amongst villagers.
BSL also organizes an inter-village cricket tournament to promote harmonious relationship
amongst Communities.

BSL provides sport kits to youth in to promote sports & competitive spirit amongst villagers.
BSL also organizes an inter-village cricket tournament to promote harmonious relationship
amongst Communities.

CSR
The Company incurred losses in the preceding three financial years. Thus the Company was
not required to spend any money for CSR activities during the financial year 2017-18. Post
the Acquisition, the Board has reconstituted the CSR Committee and renamed it as
Corporate Social Responsibility and Sustainability Committee. On the recommendation of
the newly constituted Corporate Social Responsibility and Sustainability Committee, the
Board has adopted a new Corporate Social Responsibility and Sustainability Policy
effective July 11, 2018.
 FINANCE DEPATMENT

They maintain a valuable relationship and trust with all our stakeholders by ensuring a
transparent financial reporting system. Our superior credit profile is reflected in our relationships
with over 100 banks and financial institutions having commitments with us. Our financial
discipline and prudence is also reflected in our strong credit ratings

During the year2017-18, the total turnover from operations was ` 17,404.43 crore. The increase
in turnover was mainly due to increase in sales volume and increase in average realizations.
During the year, the company recorded a net loss of ` 24,813.47 crore (previous year: Net Loss
was ` 3,501.12 crore).
The increase in loss is primarily due to higher exceptional charges over previous year. The basic
and diluted earnings per share for financial year 2017 – 18 they’re at (`1,095.45). In accordance
with the provisions of the Insolvency and Bankruptcy Code, the Company was admitted to the
CIRP Process pursuant to the order of the NCLT on July 26, 2017. Pursuant to the IBC Order
dated May 15, 2018, shares of the Company have been acquired by Bamnipal Steel Limited, a
wholly-owned subsidiary of TSL.
It is to be noted that during the CIRP Process (i.e. between July 26, 2017 to May 15, 2018), RP
and prior to the Insolvency Commencement Date, the erstwhile Board of Directors they’re
entrusted with and responsible for the management of the affairs of the Company.

FINANCIAL POSITION

Current financial position of the organization is quite stable.

Capital Structure of the Company

When the company was in start-up stage they have taken loan from a bank.

Now they are dependent on revenues generated by product sales.

 HUMAN RESOURCE DEPARTMENT

Human Resource department is a department for the effective management of personnel at work.
Human Resources management is the sense of planning organizing and controlling the various
operating functions of processing, developing, maintaining and utilizing the labor process for the
purpose of contributing a lot towards the accomplishment of major goals of the organization.

FUNCTIONS

 Recruitment and Training

 Record Keeping and Tax Compliance

 Payroll and Benefits

 Employer-Employee Relations

 Employee Performance Improvement Plans

 OBJECTIVES OF VISITING BHUSHAN STEELS LTD.

They have a subject in our course industrial exposure, so that they can have a insight look of
how an company actually works. They visited this company so that they can have a practical
knowledge of how an company functions. Our main Objectives for visiting the Company theyre :

● To gather the information about how the steel is processed;

● How does the process takes place;
● What are the costs involved in processing one coil of steel;
● How many workers are engaged in the manufacturing process;
● In how many shifts workers work.

PRODUCT RANGE

COLD ROLLED PRODUCTS

 Cold Rolled Coil
 Cold Rolled Sheet
 Cold Rolled Closed Annealed Coil
 Cold Rolled Closed Annealed Sheet

GALVANIZED PRODUCTS

 Galvanized Sheet
 Galvanized Coil
 Galvanized Corrugated
 Galvanized Profile Sheet

GALUME PRODUCTS

 Galume Plain Sheet/Coil

 Galume Profit Sheet
 Galume Corrugated Sheet
 Bare Galume Tile Profit Sheet
PRECISION TUBES

 Electric resistant Precision Tubes Round / Oval / Rectangle/ Square / Boiler / Air heater.
 Cold Drawn Theylded Precision Tubes Round.

HARDENED AND TEMPERED STRIP

 Hardened and Tempered Sheet / Coil.

HIGH TENSILE STEEL STRIPPING

 High Tensile Steel Stripping
 Metal Seal
PROCESS FLOW CHART

TUBE MILLING

CLEANING PROCESS

BOTT JOINT PROCESS

ACCUMULATION PROCESS

FORMATION PROCESS

SIZING PROCESS

CUT TO LENGTH PROCESS

 PROCESS IN DETAIL

The raw material which has been purchased from Jindal, Russia, and such other suppliers is
stored in the warehouse. These raw materials are in the form of steel coils. Then as per the
requirement or order given by the customer this raw material is taken for Tube Milling Process,
they’re the sheet is folded to make a pipe. After the folding process of the sheet, these pipes are
sent for Cleaning Process. In this process pipes are cleaned from inside. This process will help to
remove all the useless particles on the pipe.

Then the cleaned product has to undergo the Bott Joint Process. Here the folded pipe is joined
with the help of theylding. That is both the sides of the sheet which theyre brought together in
folding process are joined. The finishing is done so accurately that the joint cannot be identified.
Now Accumulation Process takes place. Here the pipe is kept I hold position till the other pipe is
get theylded. Due to this type of process no machine is kept ideal. Thus helps in optimum
utilization of machineries. From butt joint process and sizing process pipe becomes very hot. So
it is alloted to go from the Formation Process.
In the formation process the hot pipe has to undergo the shotheyring of the lubricant. The
lubricant is nothing but the mixture of DM + lubricant oil. DM is water without minerals. This
type of lubricant helps the pipe to make it cool.

After the pipe is joined the thickness and the diameter of the pipe is maintained in Sizing
Process. Here the pipe of required diameter and of required thickness is prepared according to
the demand of various customers. This sizing process changes as per the demand of the
customer.
Every customer has different requirements thus the management has to change the settings of
there machineries regularly as per the customers. After the formation process pipes have to be
cut in a particular length. Thus this work is done using Cut To Length Process. Here the pipe is
being cut in equal length according to the requirement of there customer. As sizing process this
process also requires to change the setting of the machineries as per the demand of the
customers. Thus management has to be very careful.
 SWOT ANALYSIS

STRENGTH

 Adopting latest world class technology.

 Technical tie-up with Sumitomo Metak, Japan.
 Location advantage
 Availability of its own iron ore and coal.
 Abundance of quality manpotheyr at low cost.

WEAKNESS

 BSL lacks aggressive sales promotion activities.

 Lack of export market activities
 Unscientific mining
 Low R&D investments.
 Potheyr shortage.

OPPORTINITIES

 Since BSL is a major consumer of electricity which is almost 30% of total product
costing, it should have potheyr plants which can produce a large amount of electricity for
its consumption.
 Export market penetration
 Consolidation.

THREATS

 Government policies, this results in up and down in steel prices.

 Technological changes.
 Price sensitivity and demand violation
 Slow industry growth.
 CASE STUDY

The National Company Law Tribunal (NCLT) has reserved its order in the matter between State
Bank of India (SBI) and Bhushan Steel Ltd regarding recovery of dues amounting to Rs43,000
crore.
The SBI on Thursday moved the NCLT against Bhushan Steel, claiming the company had
defaulted on loans of over Rs43,000 crore.
The application came in view of the bank’s statutory rights under the Insolvency and Bankruptcy
Code (IBC) to recover its dues.
Arguing for the acceptance of the application, the lawyer for SBI said, “A total of INR 3210
crores and INR 4295 under rupee term loan has been disbursed as of June 30, 2017. Revival
letters have been given by SBI wherein INR 6525 crores are due for 3 SBI subsidiaries after
amalgamation. Acknowledgement of the debt, and default letters for an amount of 4000 crores
have also been submitted."
She said that, in furtherance of “Sections 4 and 3(12) of the Insolvency and Bankruptcy Code
(IBC), it is in the interest of the banks that the resolution process begin at the earliest, in a time
bound manner."
The SBI lawyer also made a reference to the RBI directive for recovery of dues from these mega
defaulters. She, however, also pointed out that “reliance on various RBI notifications is
irrelevant". She informed the tribunal that “statutory remedy has already been exercised and they
are now before the NCLT for seeking redressal".
She further submitted that “there is mandatory proof for the debt" as well, and that in their own
replies it is not disputed that there is a debt outstanding.
The NCLT chairperson observed in favour of the banks that “the RBI Directive is irrelevant. To
recover your dues is a statutory right", highlighting the independent nature of these proceedings.
Highlighting the generously sad state of affairs of the banking industry, he said, “This happens
only in India that a loan is advanced to someone to process interest payments."
The lawyer for Bhushan Steel submitted, “In the declaration form there is close to Rs100 crore
difference in the default amount, whereas, as per Section 75 of the IB Code, material facts should
have been revealed and they have been omitted despite the knowledge of them being material.
There has to be some sanctity for the exercise of powers of NCLT as the adjudicating authority."
Bhushan Steel with reference to a Working Capital Consortium Agreement between the two
entities, submitted that “the working capital becomes payable only when there is a recall or
demand for payment", and that the principal amount of the debt constitutes 65% of the working
capital.
“There is a difference between debt and default— the entire amount has been shown as a default,
even though no default notice was served about the working capital," he said.
He also referred to two orders of the National Company Law Appellate Tribunal (NCLAT),
wherein if there is no default or there are misleading statements, the application has to be
rejected.
In reply to the objections raised on behalf of Bhushan Steel, SBI argued, “Merely allowing the
cash credit account to operate in order to not choke the company does not imply that SBI is now
not entitled to recover its dues."
Earlier, the government had amended the RBI Act, giving powers to the Reserve Bank of India
(RBI) to direct banks to take punitive action against individual accounts under IBC that covered
about 25% of the banking system’s non-performing assets (NPAs). Giving effect to this new law,
the RBI issued a directive for kick-starting the process of recovery of dues owed by these mega
defaulters to various banks.
The gross bad debt of the Indian banking system as of March was at Rs7.11 trillion, which
means the 12 accounts would be responsible for about Rs1.78 trillion.
 FINDINGS

 BSL is the most efficient flat steel producer from 2013-19.

 In 2008-09, steel industry faced a downfall in their production and sales due to the great
recession of 2011-2013.

 Bhushan steel performed theyll in domestic sales during recession.

 Industry has minimized the gap between production and sales thus reducing the wastage
and inventory level thus improving the efficiency of steel industry.

 It was found that BSL makes a large variety of products with better technology and
advancements strategies.

 BSL plants are situated near to the consuming centers, which help BSL in easy and fast
delivery of products.

 The tie-ups that BSL has with the foreign companies for research and development is
very beneficial of BSL.

 BSL is also improving its image in terms of quality, supply and price and after sales
service.

 BSL wide range of products is a major advantage which helps them to be a market leader.

 GP & GC are the products which are most demanded in the market.

 SAIL is the largest producer of steel from 2008-2018

 SUGGETIONS

The recommendations which are to be suggested are as follows:

 Overseas expansion of their business.

 Focus on new research and development.

 Increase the sales network and sales promotional activities in India and outside India.

 Improve its transportation facilities and after sales services.

 BSL should focus on generation more potheyr.

 Retail outlets in India and abroad.

 BSL should improve its quality and pricing strategy to be a sole leader in market.

 Offer replacement of defected products instead of settlement.

 Company should focus on making new dealers and giving them more advantage.

 Time-to-time survey should be conducted.

 CONCLUSION

The company has pre-set objectives and tries to achieve them. In a very short span of
time it has achieved a high quality standard. One more interesting fact is that the
company is very time bound and strictly follows time table. The company expects its
employees to achieve the pre-defined targets. Company also provides training to its
employee and is concerned with their up-lift. If the company continues to grow at the
same rate it will have a very bright future in the field of steels.

BIBLIOGRAPHY
Primary data-

 Research data collected by personal observation

Secondary data-

 Principles & Practices of management by Dr.R.L.Nolekha

 Tata steel bsl.co.in.safety

 bhushanpotheyrsteel.com

 www.indiatimes.com