PROJECT ON SUMMER INTERNSHIP AT JINDAL STAINLESS LIMITED-HISAR

-by SIDHARTH GARG -TRAINING PERIOD OF 45 DAYS

STAINLESS STEEL
INTRODUCTION

Stainless Steel does not need any introduction, as we all are regular users of stainless steel in our homes, offices, industries, workplaces & almost everywhere. It can be found each and every where in different forms. For example in the form of wrist watchs case or its strap, pens clip, refill head or nib, the coins even the trousers are held in its position by stainless hooks.
Stainless steel being an industrial product is a generic term for a group of corrosion resistant steels containing a minimum of 10.5% of chromium, varying additions of Ni, Mo, Ti, Niobium & other elements may be present. Or, in short stainless steel are iron-base alloys containing chromium as the main alloying element.

 Stainless steel is compatible & friendly with almost all types of environment. Stainless steel have proved their economic value in practically all types of industries and house hold applications. On the one hand its initial cost is higher, but overall life cycle cost of stainless steel products have been found much lower as compared to other engineering materials. The long life, attractive surface appeal, easy in maintenance & several other favorable characteristics are making the production & application growth of stainless steel very continuous and are being used widely.

 Jindal Stainless Limited Hisar, a name synonymous with unparalleled quality and decades old industry reputation, is Indias only fully integrated stainless steel plant that manufacturers world class stainless steel flat products across all grades. Equipped with its own advance R&D facilities and an exclusive complex for razor & surgical blades and a coin blanking line, the plant has the largest capacity of Stainless Steel in India in private sector.The state-of-art Melt & Casting Shops have an installed capacity of 800,000 tons per annum.

 A part of the O P Jindal group, Jindal Stainless Limited (formerly JSL Stainless Ltd.) is India's largest and the only fully integrated Stainless Steel manufacturer. Jindal Stainless Limited has grown from an indigenous singleunit Stainless Steel plant in Hisar, Haryana, to the present multi-location and multi-product conglomerate. Jindal Stainless Limited is a globally recognized producer of stainless steel flat products in Austenitic, Ferritic, Martensitic and Duplex grades. The product range includes Ferro Alloys, Stainless Steel Slabs & Blooms, Hot Rolled Coils, Plates, Cold Rolled Coils and specialty products such as razor blade steel, precision strips and coin blanks. Jindal Stainless Limited has initiated strategic growth

plans in both domestic and international markets and has made investments towards capacity expansions through forward and backward integration. Driven by its focus on sustained growth & value addition in its products and services, Jindal Stainless Limited has led the way with continuous innovation. In addition to its Stainless Steel manufacturing facility, Jindal Stainless Limited has established an extensive distribution network through its service centers and warehouses. With its well-established distribution network in both Domestic and an overseas market, Jindal Stainless Limited is well equipped to serve its customers from its Stainless Steel manufacturing facilities at Hisar and Odisha.

 Jindal Stainlesss Stainless Steel capacity after full expansion at Odisha will be about 2.5million tons per annum.

MILESTONES

1970-2000
Incorporated in 1970 as Jindal Strips at Hisar, Haryana, India Started manufacturing of stainless steel in 1978 Provided seed capital for other ventures of the group Enhanced stainless steel capacity to 200,000 tons

2001-2005
Stainless Steel (SS) operations separated from group investments SS capacity ramped up to 400,000 tons.

Acquired cold rolling facilities in Indonesia.

Started investments in phases in Orissa.

Started Service Centre in India.

2006-2010
SS capacity ramp up at Hisar plant to 720,000 tons. Commissioned phase-I at Odisha- 250,000 tons ferro alloys & 250MW thermal power plant.

Started investment on Phase-II at Odisha - additional 800,000 tons stainless steel capacity.
Set up service centre in Spain under a JV.

2011
Commissioning of phase-II additional 800,000 tons stainless steel facilities. Overall Stainless Steel melting capacity now at 1,520,000 tons (Hisar 720,000 tons & Odisha 800,000 tons).

COLD ROLLING DIVISION

STAINLESS STEEL PRODUCT FORMS

PLATE These are hot rolled /forged product with minimum thickness of 4.76 mm and width more than 254 mm.

SHEET
Stainless steels are flat rolled product in coil form or sheared length. It may be hot rolled or cold rolled. As per the conventional specification sheets are produced in thickness range of 0.13 to 4.76 mm and width more than 6.10 mm. Production of hot rolled sheets involves rolling of conditioned slabs in hot strip mills for rolling of slabs reheating furnaces are used to raise the slab temperature to hot wording range. Red-hot slabs are than rolled to finished size in modern strip mills in hot rolled coil form, generally in thickness of 1.5 mm and above.

 Hot rolled coils are annealed, pickled and cold reduced to lower thickness in 4-hi or 20-hi cold rolling mills. Cold sheets are annealed, pickled and sometimes temper rolled also, to improve its metallurgical, physical and mechanical properties.

STRIP
Strip is also hot or cold rolled flat product like sheet, the only difference in sheet and strip is that the width of strip is less than 6.10 mm.

FOIL
Foil is an ultra thin cold rolled product in coil form few microns to 0.13 mm thickness and less than 6.10 mm width. Thickness tolerances of the foils are very important factor. Foils are produced in slit widths in various finishes for wide range of applications.

BAR
It is stainless long product produced by hot or cold finishing operation. These are produced in various cross sections and finishes in straight lengths. Hot finished bars are produced in various shapes and sizes lime structural shapes, angles, channels, and tees, round etc, these are commonly produced by hot rolling forging or extraction process. Hot worked products undergo annealing, heat treatment, pickling conditioning and straightening operations.

WIRE ROD
It is the smallest round section of stainless steel, which can be produced by hot rolling process in a wire rod mill. The wire rod with minimum diameter of 5.5mm can be rolled from stainless steel billets. Almost all wire rods are cold drawn into wires of different diameter and shape to improve physical dimensional surface smoothness and mechanical properties.

 Wire cold drawing of annealed pickled hot rolled wire rods produces Stainless Steel Wires. Round wires are generally produced in diameter range of 0.08mm to 15.9mm. Production of wires involves wire drawing of hot rolled wire rod through series of tapered hole die. Finished wires can be produce in various finishes and tempers. In addition to circular cross section, wires are produced in various shapes like oval, flat etc. depending upon the end use requirements. Wires are available in several tempers like annealed, soft, and intermediate or spring temper for various applications.

PIPES AND TUBES

Pipes and tubes are tubular hollow products in seamless or welded forms. Processing of round billets, rolling or extrusion process produces seamless tubular products. These are having no joints, therefore, have uniform strength across its cross section. After hot processing various heat treatment, rescaling and finishing operations are performed.

Global Position of JSL

Stainless steel consumption globally has grown by 5.2% annually in the last 10 years despite 2-3 years of overall consolidation in steel and stainless steel industry. Last 10 years growth has primarily been driven by strong growth in Asia especially China and India having registered growth of 21% and 12% respectively. China was the biggest stainless importer and consumer in 2011 with apparent consumption of 6.2 MT. and an import of around 3.5 MT.

 Stainless steel industry in India is witnessing a radical change in consumption pattern with demand picking up in new segments like railways, architecture building, construction, automobile segment, and other applications like fast food chains, shopping malls, and commercial complexes. Any history dealing with the Steel Industry of India of modern times has to start with the vision of Jamshedji Tata who put India on the world map of Steel earlier than any other country in the whole of Asia.

 In the Steel industry there are three major companies in India 1. 2. 3. Tata Iron and Steel Company Steel Authority of India Limited Bhushan Steel and Stainless

PRODUCT MANUFACTURED AT HISAR PLANT

Slabs:

Blooms

 Hot Rolled Products As cast/ground of slabs, they are first heated and socked in reheating furnace, rolled in roughing mill to intermediate thickness and to the final thickness in the steckel mill.

(known as black coil)

 Hrap Coils: Hot Rolled Annealed pickled coils are produced after continuous annealing and pickling.

Hrap Plates: Plates are finished after annealing & pickling or by cutting HRAP coils to desired lengths.

 Cold Rolled Products: Cold rolled coils and sheets are produced after being processed in 20 Hi-mill, continuous anneal & pickle line, slitting line and cut to length lines.

 Blade Steel The company is exclusive producer of stainless steel Stainless for making Razor Blades and Surgical Blades in India. The plant has a capacity to produce 10,000 metric tones per year.

What Is A Letter of Credit?

A documentary credit, or letter of credit is an undertaking issued by a bank for the account of the buyer (applicant), to pay the seller (beneficiary) provided the terms and conditions of the documentary credit are complied with.

A documentary credit, or L/C, usually satisfies the sellers desire for cash payment and the buyers desire for credit.

MODES OF INTERNATIONAL TRANSACTION

100% risk of seller
Against Open Credit 100% safety to buyer

100% risk of buyer

Against advance 100% safety of seller

SOLUTION
TO RISK
OF

BUYER & SELLER

LETTER OF CREDIT

Defination of letter of credit

A binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller according to the underline letter of credit.

Letter of Credit Related Terms:

Applicant- the buyer in a transactions. Beneficiary - the seller or ultimate the recipient of the fund. Issuing bank - the bank that promise to pay. Advising bank/negotiating bank help the beneficiary use the letter of credit.

Types of Letter of Credit:

Existance
Revocable v/s Irrevocable L/C

Tenor
Sight v/s Usance L/C

For Seller enhanced security

Confirmed L/C v/s Unconfirmed L/C

Stand by L/C

Regulations Governing L/Cs

Documentary credits are governed by the International Chamber of Commerces Uniform Customs and Practice for Documentary Credits (UPC 500).
There are two basic types of Documentary Credits: Irrevocable and Revocable. An Irrevocable L/C cannot be cancelled or modified without the express consent of the issuing bank, confirming bank and beneficiary. A Revocable L/C can be cancelled or amended without the beneficiarys consent or prior knowledge.

Advantages of Letter of Credit

Provision of finance for Seller Risk covered Business Expansion/New Business Opportunities

Disadvantages of Letter of Credit

It deal with the documents and not with the goods This payment method is costlier than other methods. The Beneficiarys documents must comply with the terms and conditions. No availability of the confidential data.

How Letter Of Credit Works ?

Buyer

Request

Issuing Bank

Advise

Seller

Trans Copy

Advising Bank/ Negotiating Bank

Buyer

Document

Issuing Bank

Document

Seller

Goods Document

Negotiating Bank

Buyer

Accept

Issuing Bank

Seller

Release

Negotiating Bank

Paid

Process Flow Index

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Buyer submits Purchase Order or Contract to Seller. Buyer places application for Letter of Credit with buyers bank. Buyers bank sends confirmation of Letter of Credit to Sellers confirming bank. Confirming bank sends copy of Letter of Credit to Seller. Seller sends order confirmation to Buyer. Seller sends order to freight forwarder. Freight forwarder exports order to Buyer. Freight forwarder sends export documents to Seller Seller presents Letter of Credit and export documentation to confirming bank for settlement. Confirming bank confirms authenticity of Letter of Credit and export documents, pays Seller per terms of the Letter of Credit. Confirming bank forwards export documents to Buyers Bank. Buyers bank presents copies of export documents to Buyer; Buyer pays bank under terms of the Letter of Credit; Buyers bank releases original export documents to Buyer. Buyer presents original export documents to local customs authorities. Customs authorities verify authenticity of documents and release goods to Buyer.

JSLs LETTER OF CREDIT -FORMAT

FORMAT OF ILC
Name and address of Beneficiary:

JINDAL STAINLESS LIMITED P.B. Box No.6, O.P. Jindal Marg, HISAR (HARYANA) Basic + Taxes + duty +Freight+ Tolerance + Interest As per purchase order & order acceptance

2. L/C Amount 3. Quantity

: :

 4.Description of goods

: Cold Rolled/Hot Rolled Sheet/Plates/Strips/Coils As per purchase order & order acceptance. To be billed : 30 days/60 days From the date of Invoice

5. Unit Price

6. Freight 7. Usance Period

 8. Negotiating Bank

: :

Any bank in India Min. 6 Week from date of LC Opening

9. Last date of shipment

10. Last date of negotiation

: With in the validity of LC Expiry

Place to be mentioned.

11. Place of Expiry 12. Part shipment

: :

Allowed

 13. Trans shipment 14. Shipment from 15. Shipment to 16. Insurance

: : : :

Allowed/ not allowed. JSL Hisar/JSSL Gurgaon Buyers place. Applicant A/c.

17. Documents required :1. Signed Excise Invoice (Original for Buyer) 2. Lorry Receipt

 18. Bank Charges

: Openers Bank Charges to Opener and Beneficiary bank charges to beneficiary account. : Through RTGS Only or At the local branch of L/c issuing Bank at HISAR : Interest @12.50% P.A. is payable by Opener (This may be change from time to time depending up on Bank base rate)

19. Reimbursement

20. Interest

Other Points to be checked: L/C to be advised to the beneficiary through State Bank of India, Small and Medium Enterprises Branch, JSL Complex ,O.P. Jindal Marg Hisar (Haryana) 125005, Ph.01662-220617, 221208 Fax no.221752 Tolerance: +/- 10% in total quantity and value allowed in the L/C and +/-10% to individual size/quantity. The credit free period should be clearly mentioned. L/C signatories codes are mentioned by the L/C issuing branch.

 Proper clause has been incorporated when the material will be dispatched to sister concerns. All conditions should be from the date of dispatch.

In the event of Negotiating Bank Not being paid on due date, overdue (OD) interest @16% shall be paid by applicant/appliciant bank.

COLD ROLLING DIVISION

Cold rolling divisionMarketing office

ANNEALED & PICKELED SS COILS

Special thanks to Mr. Pankaj Aggarwal (DGM Marketing-Hisar Plant) Mr. Shailesh Arya
(Chief Marketing Officer)

Mr. S.K Jain

(Plant Head-Hisar)