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ORGANISATION STUDY

CHAPTER-1
INDUSTRY PROFILE

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INDUSTRY PROFILE

1.1 STEEL INDUSTRY OVERVIEW

Steel is the most widely used metal in the whole world. It is a versatile commodity
which forms the core constituent of all major economies. As a result, steel consumption is a
derivative of the growth pattern of its various end users sectors, i.e. manufacturing, housing,
infrastructure, automobile etc.

Steel products fall into two main categories, namely flat products and long products.
Flat products are derived from slabs and mainly comprise of hot rolled [HR] coils, plates and
sheets. Long products derive their name from their shape and are made using billets and
blooms, which include rods, bars, pipes, ropes and wires.

There were some signs of evidence of slow down in the global economy in the year
2009 but it continued expanding and sustaining its positive momentum of growth at 5.5
Percent in 2010. The factors that could be attributed for this slow down were markedly
higher oil prices, tightening monetary policy in US/Other countries, step increase in prices of
non-ferrous base metals.

Despite the pressure on the world economic growth due to these factors, the growth
potential in the emerging economies and relatively less dependence on petroleum products
neutralized the impact of these factors, thus still achieving growth rate of 5.5 percent in
2010.

Steel comprises one of the most output of all sections of economy steel industry is
both a basic and core industry. The economy of any nation depends upon a strong base of
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iron and steel production. Past history has shown that countries having strong potentiality
for iron and steel products have played a predominant role in advancement of civilization in
the world.

 Steel is such a versatile commodity that every objects we see in our day-

to-Day life uses steel either directly or indirectly. Steel is used in


producing small products such as nails, pins, needles etc. though surgical
instruments, boilers, ships, bridges, automobile parts to heavy
instruments, current rises heavy structures buildings etc. everywhere steel
is versatile and an indispensable item. The versatility of steel can be
traced to three main reasons they are:-

 It is the only metallic item, which can be conveniently and economically


produced, in required quantities. It has got very good strength coupled
with durability and malleability into this sheets its properties can be
changed over a very wide range. The development of steel industry in
India should be viewed in conjunction with the type and systems of
government that had been ruling the country. India is known for some of
the moments, which are alloys of steel and iron. However production in
significant quantity started only after 1900.

 The growth of steel industry can be traced out conveniently studied by

dividing the periods into post and pre independence periods. By 1950 the
total installed capacity for ignorant steel production was 1.5 millions
tones and during the pre independence period the total quantity was not
significant and development in the steel sector mainly due to apathy of
the Government. Only after independence serious steps were taken to
develop this sector the capacity was increased from 2.2 to about 16
million tons by 1990’s.

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 Steel is crucial for the development of any modern economy and is

considered to be the backbone of human civilization. The level of Per


capita Consumption of steel is treated as an important index of the level
of socio economic development and living standards of the people in any
country. It is a product of a large and technologically complex industry
having strong forward and backward linkages in terms of material flows
and income generation. All major industrial economies are characterized
by the existence of strong steel industries in their initial stages of
development.
 Steel industry was in the vanguard in the liberalization of the industrial

sector and has made raped strides since then. The new Greenfield plants
represent the latest in technology. Output has increased, the industry has
moved up in the value chain and exports have raised consequent to a
greater integration with the global economy. The new plants have also
brought above a greater regional dispersion easing the domestic supply
position notable in the western region. At the same time, the domestic
steel industry faces new challenges.

 Steel has been part of some of the greatest achievements in history nearly

15 years ago steel steel sparked off the industrial revolution, the steel
industry as an important role to play in the development of any any
industrial nation. It is a critical intermediate for the industry, and the
strength of construction.

 Steel is a product of a capital intensive and complex industry that requires

national attention for its development. The demand of steel is basically a


derived demand; growth in the industry is dependent on the level of
activity of the steel consuming industries specifically the construction,
automotive, appliances and other consumer durable.

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India is the fifth largest steel producer of iron ore in the world. It is equipped to meet
over 90% of country’s total requirements of steel, with imports restricted preliminary to a
small sophisticated high level additional product.

The steel industry being a core sector; tracks the overall economic growth in the long
term. The growth of the steel industry is dependent on the development of steel consuming
industries like automobiles, consumer durables and infrastructure.

India has a per capital consumption of steel of around 30 kgs as against 180 kgs in china
and an average of 400kgs in the developed countries.

We find that there is a wide gap in relative steel consumption which indicates that india
has a great potential ahead to raise its steel consumption with infrastructure and really
development in the country the past few years has witnessed an increase in steel
consumption and in order to match the steel industries have geared up with capacity
expansions to meet this growing demand.

The Indian steel industry is almost 100 years old now. Till 1990, the steel industry
operated under a regulated environment with insulated markets and large scale capacities
reserved for the public sector. Production and prices were determined and regulated by GOI.
The steel sector was deregulated in 1991-92,when controls on capacity and prices were
abolished along with quantitative trade restrictions. Import tariffs were also brought down
substantially. However ,with the onset of liberalization the Indian steel sector witnessed
entry of several domestic private players and large private investments flowed into the
sectors to add fresh capacities.

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TOP TEN STEEL PRODUCING NATION


( million tones)
:-
RANK NATION 2009 2008 VARIANCE

1 CHINA 567-8 500.3 13-5%%

2 JAPAN 87-5 118-7 -26.3%

3 RUSSIA 59.9 68.5 -12.5%

4 US 58.1 91.4 -36.4%

5 INDIA 60.3 57.8 +4.2%

6 ROK 48.7 53.6 -9.4%

7 GERMANY 32.7 45.8 -28.7%

8 UKRAINE 29.8 37.3 -20.2%

9 BRAZIL 26.5 33.7 -21.4%

10 TURKEY 25.3 26.8 -5.6%

TOP-10 992.8 1031.2 -3.7%

WORLD 1223 1329 -8.0%

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TOP-TEN STEEL CONSUMING NATION: -

( million tones)
RANK NATION 2009 2008 VARIANCE
1 CHINA 542.4 434.6 24.8%
2 US 57.4 98.3 -41.6%
3 INDIA 55.3 51.3 7.7%
4 JAPAN 3.2 77.9 -31.7
5 ROK 45.4 58.6 -22.5
6 GERMANY 28.4 42.4 -33%
7 RUSSIA 24.7 35.4 -30.2%
8 ITALY 18.6 33.1 -43.8
9 BRAZIL 18.5 24 -22.9%
10 TURKEY 18.1 19.9 -9.45
TOP-10 861.9 875.4 -1.5%
WORLD 1121 1202 -6.7%

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MAJOR PLAYERS

Steel Authority Of India Limited (SAIL) is the leading steel making company in India. It
is a fully integrated iron and steel maker, producing both basic and special steels for
domestic construction, engineering, power, railway, automotive and defense industries and
for sale in export markets. The Government of India owns about 86percent of SAIL’s equity
and retains voting control of the company. However, SAIL, by virtue of its “Navratna”
status, enjoys significant operational and financial autonomy. Major units of SAIL are as
under:

Integrated Steel Plants:

Bhilai Steel Plant [BSP] in Chhattisgarh

Durgapur Steel Plant [DSP] in West Bengal

Allow Steel Plants [ASP] in West Bengal

Salem Steel Plant [SSP] in Tamil Nadu

Visveswaraya Iron and Steel Plant [VISP] in Karnataka

Indian Iron and Steel Company [IISCO] in West Bengal

Maharashtra Electro smelt Limited [MEL] in Maharashtra.

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2.1 MAJOR STEEL PRODUCERS

HOT ROLLED

 TISCO [Tata Iron and Steel Corporation Ltd.]


 Essar Steel
 Ispat Industries Ltd.
 SAIL
 JSW

COLD ROLLED
 Mukundh Ltd.
 Mahindra Ugine Steel Company Ltd
 Tata SSL Ltd.
 Usha Ispat Ltd.
 Kalyani Steel Ltd.
 Electro Steel Castings Ltd.
 Sesa Goa Ltd.
 Lloyds Steel Industries
 JSW
 Jindal Strips Ltd.
 JISCO
 Saw pipes
 Uttam Steel Ltd.

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The industry classification based on product categories (and the major producers) can be
divided into the following:

Iron Ore- National Mineral Development Corporation [NMDC], Kudremukh Iron Ore Co.
[KIOCL] and Sesa Goa are the major merchant producers of iron ore. SAIL and Tata Steel
have there captive iron ore mines.

Pig Iron- KIOCL, Sesa Goa and Usha Ispat. Apart from them there are many Mini Blast
Furnace [MBF] pig iron producers and even integrated steel plants like SAIL and RINL
produce a significant amount of pig iron. Sponge Iron- Essar Steel, Ispat industries, Vikram
Ispat (a division of Grasim) are the major producers of gas based sponge iron.

Flat Steel Products- SAIL and Tata Steel, Essar Steel, Ispat Industries and Jindal South
West are the major producers of hot rolled coils [HRC].

SAIL, Tata Steel, I spat Industries, Jindal group of companies, Uttam Steel and Bhutan Steel
are the big producers of cold rolled coils/sheets [CRC] and Galvanized sheets.

Long Products- RINL, SAIL and Tata Steel are the major producers of long products.
Integrated Producers- SAIL, RINL, Tata Steel and JSW Steel Ltd are the largest primary
steel producers.
Secondary producers- Essar Steel, I spat Industries and Loyds steel is the largest producers
of steel through the secondary route.

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CHAPTER-2
COMPANY PROFILE

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COMPANY PROFILE
PLANT PROFILE
Jindal organization is the fastest growing group with enviable business trend record and
the strong market presence in India today. OM PRAKASH JINDAL established Jindal in
1952 with small units making steel. After forty years of its inception, Jindal India is now a
Jindal Organization.
Ranked Fourth amongst the top Indian business houses in terms of sales/profits, Rs.
19,700 crore O.P. Jindal group has developed into a multi faced organization and is one of
the largest steel producers in India with 12 plants in India and 2 in USA. With a head count
of more than 25000 people, the group is the fourth largest in India, after Reliance, Tata and
Birla Group in terms of sales turnover in the private sector.

The organization is still expanding, integrating, amalgamating, and growing, new


directions, new objectives, new visions have taken shape but Jindal credo remains the same.
for nation building.

INDIA’S ONLY FULLY INTEGRATING STAINLESS STEEL PLANT


Until the mid 70’s huge chunks of India’s stainless steel requirements were met by
imports, the challenge was to produce high quality stainless steel at less than world steel
prices. In 1979-80 the Jindal were successful in using Argon Oxygen Decarburization
Converter, a state of art technology development in house.
A process integrating of the different stages in the manufacturing of stainless steel was
successfully done. As a result every thing from the conversion of raw material in the billets
and slabs, to hot rolling to striped plates, as well as cold rolling was done in house.
Since then, Jindal Strips Ltd. (JSL) has forged ahead and has become India’s largest
stainless steel producer in the countries private sector with a capacity of 2 lakh MnT by

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December 97, in addition of new 30,000 ton per annum capacity stainless steel cold rolling
mil
INDIA’S ONLY INTEGRATED PRIVATE SECTOR GALVANIZED STEEL
PRODUCER
In 1982, a decision was taken to increase the product mix under the Jindal Iron and
Steel Co. Ltd. [JJISCO] a plant acquired at Tarapur [MAHARASTRA] to produce slabs and
addendum to this, a facility was set up at Vasind to manufacture hot roll plants. JISCO has
burgeoned into leading cold roller and a largest producer and exporter of galvanized steel
and high value steel product in the country, JISCO has a production capacity of 4 lakh MnT
in the galvanized products.

INDIA’S ONLY DIAMETER SUBMERGED ARE WELDED STEEL PIPES

At Kosi Kalan [UP], the country’s first and only large diameter UOE Submerged Are
Welded [SAW] steel pipe nit was put up under the O.P.Jindal banner. A 100percent import
substitution product. SAW pipes are made in technical collaboration with UEC, pits burg a
subsidiary of US steel; the world manufacturer of steel.

WORLD STANDARD SPONGE IRON


A sponge iron plant at Hissar and Raigarh has been set up to manufacture sponge iron and
hot rolled coils.

INDIA’S ONLY INTEGRATED GREEN-FIELD STEEL PROJECT


JSW, a green field integrated steel plant with a capacity of 1.60 million ton per annum of
hot rolled coils. JSW has collaborated with Voest Alpine of Australia, which will provide a
unique advantage in manufacturing and technology.

LOCATION OF JSW

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JSW is a green integrated steel plant. It has been located in Bellary – Hospet, high grade
iron ore belt in Karnataka. The project site is at Toranagallu spread approx. 4500 acres of
land. It is located 29 km from Bellary and 33 km from Hospet. It has good rail connection
to major port such as Mangalore, Goa and Chennai; its distance is 644, 419 and 540 kms
respectively and also Mumbai port which is 915 kms away.
The plant site is also well connected through network of state and national air linkage
available through a major airport at Bangalore. Toranagallu has a serene environment and a
placid ambience with some beautiful places sight seeing with in vicinity.
Some of them are:
 Donimalai Hill
 Tungabhadra Dam
 Hampi
Reason for choosing the location:
The region was justifying chosen for the venture because of the availability of rich iron
ore in the region. Other raw materials required for various process from the adjoining areas
like Bijapur and Sandur, availability of water from Tungabhadra Dam. During 1970, three
sites selected in South India for setting up steel plants viz, Vijayanagar and Salem. Mrs.
Indira Gandhi laid foundation stone for Vijayanagar Steel Plant in 1970; public sector gave
up due to paucity of resources.
Four private companies made JV with KSSIDC but with drew as

 Non – availability of adequate power and water in the region


 Coal imports difficult due to poor connectivity with ports
 Poor infrastructure in the region
JSW was approached in 1994 by Government. of Karnataka.
JSW succeeded mainly due to:

 Selection of Technology [COREX based integrated steel plant]

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 Power generation became possible due to large volume COREX gas availability
 Low water requirement-absence of coke oven etc
 Rail connectivity with Goa established in 1995.

2.1 JSW’s VISION AND MISSION:

VISION:
“TRANSFORM STEEL DOMAIN THROUGH INNOVATIONS”

MISSION:
JSW words, represents their faith, their very beliefs, and their core values.

“MAXIMISE CUSTOMER SATISFACTION AND SHAREHOLDERS VALUE THROUGH


HRD”

2.2 OBJECTIVES:

a. Value and groom people for innovating the future.

b. Catalysts for growth of India’s steel and power industries.

c. Delivering quality products, services at a competitive price and to achieve customer


satisfaction on time.

d. Adopting environment friendly technology and to nature clean and healthy


surroundings.

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e. Achieve business leadership through creative and innovation.

f. Facilitating absolute decision-making through the adequate use of data

Promoting a team based culture, which encompasses human values and ethics

ENVIRONMENTAL POLICY
Work towards a continuous upgrade in our environment interests by to achieve global
presence with a view towards creating a greener world.

JSW commit towards environment will achieved by:


1. Restoring and conserving the ecological balance.
2. Implementing effective environmental management practices in all activities.
3. Carrying out operations for going beyond compliance of statutory rules and
regulations.
4. Promoting zero waste concepts by implementing recovery, recycle and reuse
technologies
5. Growing green belts and ecological parks in and around the plant.
6. Evaluating and including environmental awareness among all employees.

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3.1 BOARD OF DIRECTORS

Mrs. SAVITRI DEVI JINDAL


Chairperson

Mr. SAJJAN JINDAL


Vice Chairman & Managing Director

Mr. Y. SIVA SAGAR RAO


Jt. Managing Director & CEO

Mr. SESHAGIRI RAO M.V.S


Director (Finance)

Dr. VINOD NOWAL


Director (Commercial)

Mr. BISWADIP GUPTA


Director

Mr. NAGESH DINKAR PINGE


Director

Mrs. ZARIN DARUWALA


Nominee Director of ICICI Bank Limited

Mrs. SOBHA NAMBISAN, IAS


Nominee Director of KSIIDC

Mr. S. JAMBUNATHAN, IAS (RETD.)


Nominee Director of
UTI Asset Management Co. Pvt. Ltd.

Dr. S. K. GUPTA
Director

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Mr. ANTHONY PAUL PEDDER


Director

Mr. UDAY M. CHITALE


Director

AWARDS and RECOGNITION


The company and its employees are the proud recipients of the following awards during
the year:
a. IMEA Award:
Platinum Award by Frost and Sullivan’s India Manufacturing Excellence Awards
(IMEA) (Metal Category) – Vijayanagar Works

b. Green Tech Award:


Gold Award in Metal sector for Outstanding Achievement in
Environment Management by Green Tech Foundation U.K

c. CII-ITC Sustainability Award 2007:


Commendation Certificate for Significant Achievement in economic, environment and
social performance (on 12th December, 2007 at New Delhi

d. CII-Exim Bank Award 2007:


“Commendation certificate for significant achievement towards business excellence”
(on 1st November 2007 at Bangalore)

e. TERI Corporate Social Responsibility Award 2007:

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Certificate of appreciation in recognition of corporate leadership for good corporate


citizenship and sustainable initiatives amongst corporations with a turnover of above Rs.
500 crore
f. IMC Ramakrishna Bajaj National Quality Award 2007:
Special Award for Performance Excellence in the manufacturing category (on 21 st
March 2008 at Mumbai)

g. Tungabhadra Quality Circle Team won gold medal at ICCQC-2007, at Beijing


(October 2007)

h. Mr. J.K Tandon, Director (Project) received the National Metallurgist Award-
2007, at 45th National Metallurgists Day, 2007.
i. Young Metallurgist of the year award was jointly won by Mr. D. Satish Kumar,
Assistant Manager (RandD and SS), and Mr. T. Rajendra, Manager (SMS-1) at 45th
National Metallurgists Day, 2007.

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2.4 ORGANIZATIONAL STRUCTURE:

KEY PERSONS
CHAIRMAN

MANAGING DIRECTORS

Jt. M.D. and CEO

DIR DIR. DIR. ED


MARKETING FINANCE COMMERCIAL OPERATION

VP
VP. MKTG. VP. FIN
COMMER,

VP GM GM
GM MKTG. GM FIN. COREX STEEL CCP

GM
COMMER.

GM GM GM MAIN GM
(HRandFIN) (COSTING) TAINANCE (OPERATIONAL)

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2.5 Product profile


 HotRolledProducts
 Cold RolledProducts
 Galvanised products
 Pre-painted Galvanised products
 Jindal vishwas Sheets
Hot productsApplications
 Automobile
 Boiler and pressure vessels
 Ship building
 Railways
 Transmission towers
 Oil and petrochemicals
 Marine containers
 Coal and mining
 General and heavy Engg
Cold products applications
 Automobile
 White good
 Cold rolled formed section
 GeneralEngg andFabrication

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 Packing
 Drums/Barrels
 Furniture

Galvanised productsApplications
 Automobile
 Boiler and pressure vessels
 Ship building
 Railways
 Transmission towers
 Oil and petrochemicals
 Marine containers
 Coal and mining
 General and heavy Engg
Pre-painted Galvanised products
Application
 Roof, wall caddling and other building products
 Household appliances
 Furniture's
 Automotives
Jindal vishwas
 Durability
 Lightweight
 Easy to install

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 Low maintenance
 Environment friendly
 Fire protection

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CHAPTER-3
FUNCTIONAL AREAS

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FUNCTIONAL AREA

3.1. PRODUCTION DEPARTMENT [P.D]

MAJOR UNITS OF THE PLANT

1. RAW MATERIAL HANDLING PLANT [RMHP]

To handle and meet the demands of the raw materials required for various
plant the RMHP has proper facilities available.

A centrally controlled raw material handling system process all the raw
materials like coal, pellets iron, ore fines, limestone, dolomite and coke received
either by railway or truck.

Rated capacity 6-7 million ton/annum


Raw materials handled: Iron ore lump and fines
Pellets
Limestone
Dolomite
Quartzite
Manganese ore
Non coking coal

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FUNCTIONS OF RMHP
• Receive raw materials in adequate quantity.
• Allocate space for raw material stacking.
• Effective bedding and blending of incoming raw materials from different
mines to
get homogeneous mixture
• Timely supply raw material to respective department.
Work flow Model:-

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2. PELLETISATION PLANT

The pellets of iron manufactured here for use in COREX. The technology is
from Davy with a normal capacity of 3.0 METERS per annum. The plant is
designed to produce 10,000 tons pellet per day.

Proximity to mines with rich iron ore deposits is yet another competitive
advantage. The company undertakes mining just 20 km away from the plant. In
addition iron ore fined, which have been traditionally dumped a water, can now
be used in pellet plant further reducing the cost of production

PELLET PLANT

Rated capacity: 5.0 million ton/annum


Pellet size: 6 to 12 mm
Major units: Material receiving
: 2 ball mill
: 5 x 7.5 m disc palletizing machine
: In duration furnace
: Gas cleaning
: Water recirculation system.

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Raw materials required:


Iron Ore, 2. Limestone, 3.Dolomite, 4.Coal / CDP dust, 5.Coke, 6.Bentonite as
binder, 7.Corex / BOF Sludge, 8.Water

Salient Technical Features:

Open circuit grinding


Recirculation of hot air for reduction in energy
Use of COREX gas for indurations of pellets

2. COREX PLANT

An advancement of traditional blast furnace, the COREX is brought to India in


collaboration with Vest Alpine; Austria is expected to provide JSW a unique
identity in the Indian as well as Asian steel.

HIGHLIGHTS OF COREX PROCESS

1. Two C-2000 modules of COREX plants are capable of producing 80,


00,000 ton per annum of gross hot metal, entirely based on pellets.

2. A two-stage process consisting of the metal gasified and reduction shaft,


reducing Iron carrier, calculating of additives.

Heating and degassing of coal, generation of reduction gas, performing of


dust reduction, melting of DRI to hot metal and slag.
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The technology is based usage of iron lumps/pellets and non cooking coal
there by eliminating and coke oven plants. The two most polluting units in any
integrated steel plant. The process thus not only offers competitive advantage but
is also environmental friendly. More than 40percent of coat issued in the process
is available as export gas for production of power, DRI, fertilizer and chemicals.

Rated capacity : 1.6 million ton/annum

No. of units : 2 Module C-2000

Major units : Coal Blanding station, Coal Drying Plant, Stock House,
Cast House, COREX Tower,
Water Recirculation System,
Gas Cleaning and Distributing System
Slag Granulation Plant

Features of Corex

a. Use of Non-cocking coal


b. Availability of COREX Gas of medium calorific
c. Value for use as fuel in the steel plant as well as power
d. Environment friendly process

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4. BASIC OXYGEN FURNACE [BOF]

BOF shop converts Hot Metal from COREX plant into steel of required grade
and chemicals. Reputed steel plant builder – Mannesmann Demang, Germany,
has supplied machinery for BOF.
Rated capacity: 1.62 million ton/annum Liquid Steel
No. of units: 2
Heat size / capacity: 120 ton
Tap-Tap Time : 45
Major Units : Hot Metal De-sulphurising
Hot Metal Mixer
Basic Oxygen Furnace
Scrap Yard
Ladle Preparation and Handling Bay
Ladle Furnace
Gas Cooling and Cleaning Plant
Water Recirculation System

Features of BOF

Pre- Treatment hot metal


Bottom Stirring with insert gas in BOF
Suppressed combination
System of gas in BOF
Adjustment of chemistry and temp in ladle furnace
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Automated container

4. BLAST FURNACE [B.F]

There are two Blast Furnaces at JSWSL, BF-1 rated capacity 0.9 METERSPA
and BF-2 is 1.3 METERSPA has been commissioned in August 2006.

Process:
In the blast furnace solid charged materials like iron ore coke and lime stone are
charged in the vertical shaft of the furnace at the top and hot air blast is blown
through conveyers which are located at the bottom level. The oxygen form the
pre heated blast combines with the carbon of coke and generates heat and carbon
monoxide. the gas phase containing mainly nitration and carbon monoxide
ascends upwards through the charge which reacts with and extracts heat from the
gas wastes eventually the gas melts and metal and slag thus formed gets stratified
and separated to obtain the metal fundamentally therefore the blast furnace is a
counter current reactor.

5. CONTINUOUS CASTING PLANT [CCP]

Casting Plant is the process of solidifying the liquid steel coming through
BOF shop. The slabs are cased based on the specific parameters such as
thickness, Width and Length. To meet stringent international standards, JSW’s
continuous casting plant is designed by global leaders, Mannesmann Demang
Metallurgy, to produce quality slabs.

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Rated capacity : 1.60 million ton/annum CC slab


No. of units : 2 x 1 strand (1 in operation)
Capacity of individual unit : 1.05 million ton/annum
Slab size : Thickness max 250, min 210 mm std
: Width 800-1650 mm
: Length 8050-1070 mm

Maximum Casting Speed : 1.9 m/min


Major units : Casting Machine
: Gega Torch Cutting Unit
: Marketing Machine
: Water Recirculation System
Features of CCP

a. Air-mist cooling in segment 1 to 15


b. Unique slab numbering

6. HOT STRIP MILL [HSM]

The steel slabs are rolled into coils of desired size. The equipment is obtained
from Danielle United, USA.
Oxygen plant manufacturing industrial grade Oxygen, Nitrogen, Argon.
It is a JV with Praxair, Inc. USA and is the world’s largest oxygen manufacturing
plant.

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Rated capacity : 1.57 million TPA


Products : Hot Rolled Coils
: Hot Rolled Plates and Sheets
Width : 1250 mm max.
ID : 711 mm
OD : 1846 mm
Weight : 22.5 ton max
Major units : 1 x 250 t walking beam reheating furnace
: 1 x 4 Hi reversing roughing stand
: 6 x 4 Hi finishing stand
: 2 x down coilers
: Roll Grinding Shop
: Water Recirculation System
: Fuel Oil System

Features of HSM
High pressure De-scaling (180 Bar)
AGC control in 3 finishing stands
Work Roll Bending
Online marking
Thickness Gauge and Width Gauge

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7. JINDAL THERMAL POWER COMPANY LIMITED

Power plant producing thermal power from COREX gas. It is a Joint Venture
with Traceable, Belgium having a capacity of 260 MW (2 x 130)
Rated capacity : 2 x 130 MW

Major Units : 2 Nos. Turbine Generators


: 2 Nos. Boilers (Rating 415 t/hr at 132 bars)
: 6 Nos. Coal Mills
: Circulating Water Pump House
: Switch Yard
: 4 Nos. Electrostatic Precipitator

Features of Jindal Thermal Power Company Limited

a. The boilers are designed to work with coal or COREX Gas either
individually or in any combination.

b. Turbines are of Reheat, Regenerative condensing type tandem

compound with one HP/LP cylinders and one LP cylinder.

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3.2 HUMAN RESOURCE DEPARTMENT [H.R.D]

QUALITY OF LIFE
People come first in the new business paradigm. The success of an
organization essentially depends upon the effective harnessing and utilization of
this resource. It is imperative for an organization to constantly nurture people
and hone their capabilities foe optimal performance.

The JSW plant is complemented by a beautiful township Vidyanagar,


situated at a distance of four km from the site. The township architecture
inspired by Hampi, the erstwhile capital of Vijayanagar Empire is equipped with
all the modern facilities for the well being of the employees.

The township has an English Medium School up to 11th STD, a temple


recreational facilities including club house, swimming pool, boat house, sports
room etc., and all the primary medical facilities. There is a guest house serving
Indian and continental food. Regular group activities and get together bring the
residents of Vidyanagar closer and provide very friendly atmosphere.

WORKING ENVIRONMENT

The working environment acts as the primary motivation for all employees.
Jindal organization has constantly tried to endeavor to achieve and provide an
atmosphere of perpetual growth and shared learning of all their employees. They

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have tried to promote to team culture and encourage a serve of innovation and
positive thought.

HEALTH and SAFETY

The company aims to provide safe working conditions at all the Jindal plant
locations. The Safety and health of the employees is amused by maintaining safe
process, carrying out safe practices, providing a safe environment, importing
adequate and proper training, issuing instructions as regards to the area of
operation and including safety awareness among all employees.

DISCIPLINE
The company believes in maintaining a very high level of organizational
discipline by synergizing personal with technological discipline.

WORK CULTURE

EFFECTIVE COMMUNICATION

The Human Resource Department is handling communication at JSW.


Communication is given a high priority and this is so because the management at
JSW considers it necessary to bring down business and increase intra-
organization information flow as a major prerequisite for organizational growth

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HOURS OF WORK and WEEKLY HOLIDAYS:

The administrative office begins at 9:00 am to 6:00 pm. The plants have
timings that are regulated by services conditions prevailing at the locations. The
administrative office is closed on every Sunday.

ATTENDANCE:
Being at work regularly and on time important past of the overall job
performance, prevents employees from coming to work, telephone should be
done to the concerned supervisor at the earliest possible on first day of absence.
For extended illness a doctor’s certificate is asked by the organization.

PAID HOLIDAYS:

Holidays are given to the calendar year system and will be from January to
December. The employees are eligible for 10 paid holidays in a year. The list of
holidays for the forthcoming year is released by the end of December every year.

LEAVE:
An employee is entitled to avail EL only on confirmation and completion of
one year of service. The employee can avail casual leave and sick leave during
training/probationary period.
PROBATION:

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Any new recruit who joins the company will be put on a probation period of a
period of 6 months. The probation period is to facilities assessment of the new
entrant’s competence and suitability. The period of probation would be
mentioned in the appointment letter.
On completion of production performance is evaluated and, if it is found
satisfactory, confirmation is granted. However, should the performance be found
unsatisfactory, probation period may be extended on the sole discretion of the
management

DEPUTATION:

Jindal Organization has various group companies under its wing. At any
given point of time, a concerned company may request the services of any
employee of another company for a particular assignment. In such a case the
require employee may be put on deputation for that specific job.

SKILLS:
The term “skills” include those characteristics which most people are to
describe a company’s distinctive competence of an organization are part or the
organization character.
ENHANCEMENT OF SKILLS:

Suitable training is imparted to enhance the multiple skills of the executives


and to enrich their multi-functional tasks.

Program is undertaken keeping in view the dynamic changes in the


environment, which are contributed by rapid technological obsolescence. Sever
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competition with emerging globalization of markets, increasing consumerism,


new concepts of accountability, and social responsibility among others.
STAFF

Staffing is the process of acquiring human resources for the


organization and assuring that they potential to the achievement of the
organization’s goals. Brown and Moberg define staffing as, “The selection,
placement, training and development of appropriately qualified employees”.

a. The total manpower is JSW is large. The total number of employees


working in JSW is 4500 and increasing with new job opportunities.

b. Due to the adaptation new technology in the company, the company find,

there is a surplus in the staff, for this reason it declares 94 positions as


surplus.
STRUCTURING

The design of organization structure is a critical task of the top


management of an organization. It is the skeleton of the whole organization
edifice. It prescribes the formal relationships among various positions and
activities.

RECRUITMENT PROCEDURE:
1. Internal Source :- Redeployment

2. External Source:- Placement consultants, Data Bank, Campus Interviews,


Employee Reference
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To fill up the vacancies as approved by the management, two sources will be


identified such as (a) Internal Source (b) External Source

Preference will be given for internal source by tapping the potentials of the
employees processing multiple skills that can be re-deployed. In case of non-
redeployment of the existing employees, external source will be adopted either by
approaching Placement Consultants, Data Bank, and Campus Interviews and
Employee Reference.

RE-DEPLOYMENT
Based on the concept of business plan of 1000 million tons/annum per man
year, the HR department will ensure to maintain the present existing manpower
position of 4500. The 94 positions, which has been surplus, will be re-deployed
to fill up the vacancies of attrition’s in various departments.

SECURITY SETUP AT JSW

a. Plant operation wing


b. Township wing
c. Intelligence wing

COMPONENTS OF SECURITY OPERATIONS

a. Physical Security Measures


b. Access Control Measures
c. Package and Goods Movement Control
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PERFORMANCE APPRAISAL

OBJECTIVE

Annual Appraisal – To assess the performance of the employees annually to


decide rewards and promotions based on the vacancy and the potential of the
employees to shoulder more responsibilities.

Periodical Appraisal – To assess the performance of trainees/probationers to


decide regularization and confirmation respectively.

SCOPE

a. Annual Appraisal – Appraisal to all regular employees who have complete


minimum six months of service in the organization.
b. Periodical Appraisal – Applicable to trainees and probationers.

The appraisal form will be sent to the HODs requesting them to evaluate the
performance of the trainees/probationers and give suitable recommendations.
The appraisal form consists of three parts such as –

a. Personal profile of the appraise


b. Evaluation of performance

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c. Recommendations about the completion/extension of training probation


period and also recommendations with respect to the termination of the
appraise

TRAINING and DEVELOPMENT

OBJECTIVE

To bridge the gap between the existing skill and the desired skill there by
improving the knowledge and overall performance

PROCEDURE
INDUCTION PROGRAMME
The new recruits will be given induction program to familiarize about the
company, its products, its services, and the department in which the person is
going to be reported.

IDENTIFICATION OF TRAINING NEEDS AND TRAINING PLAN

Based on the annual training needs identified by the Head of the Department
and also through SWOT analysis, a monthly training plan will be prepared and
circulated to the departments and the nominated employees on the format
prescribed will undergo training programs within the organization and also will
be deputed to external organization/institution in India and abroad.

TYPES OF TRAINING

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A. Safety Training
B. Managerial/Behavioral Training
C. Technical Training
D. Multi-skill Training

(A) Safety Training


Here they give the information about how we make the safety in the
organization. Here they give the first aid medical information.
(B) Managerial/Behavioral Training
The employees based on their training needs will undergo managerial and
behavioral training program such as positive mental attitude, communication
skills, international relationships, time management, team building, effective
managerial skill etc.
(C) Technical Training
Technical training program will also be organized within the organization as
well as external in India and abroad such as bearings and lubricants, industrial
hydraulics and pneumatics, electro hydraulics, CMMS, CBMS, air compressions
etc.
(D) Multi skill Training
This training is normally imported to the employees in the level S1 and S2.
The objective is to enrich their skills from primary skill to secondary skill and
then to complementary skill.

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The following documents are being maintained in the training department.

“DOCUMENT” –

SHEETS OF TRAINING PROGRAMS

1. Training Nomination Sheet

2. Training Program Attendance Sheet

3. Training program Feed Back Sheet

4. Training Cardex Form

5. Training Program Conducted During the Month Form

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QUALIFICATION PROFILE OF THE COMPANY’S EMPLOYEES

Engineers 25.55percent
Diploma holders 33.85percent
Graduates and post graduates 14.90percent
CA/ICWA 1.55percent
MBA 2.78percent
Others 21.37percent

Engineers

Diploma holders

Graduates & post


graduates
CA/ICWA

MBA

Others

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3.3. RESEARCH AND DEVELOPMENT [R and D]

1. Specific areas in which R and D activities were carried out by the


company:

R and D activities were carried out in various technological areas, including


Beneficiation of Iron-Ore, Iron Making in Corex and Blast Furnace, Steel
Making and casting, Hot Rolling and waste utilization, with emphasis on
improvement in quality, productivity, energy conservation.
R and D was also carried out for development of value added products in the
form of 11 new grades to meet specific requirements of customers including;
API grades for line pipe steel
Boiler Quality
Drawing and Deep Drawing Steels
Medium Carbon and High Tensile Steels
Micro-alloyed structural-grade steels
Auto and Tube makers’ grad

2. Benefits derived as a result of R and D efforts:

• Increase in Coke Oven productivity by about 10percent without adversely


affecting the coke quality, through optimization of coal blend as per the
availability of the coals and maintaining inventory through proper coal
planning.
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• Increase in hot metal production by 2.5percent in Corex. This has been


achieved through installation of a coal drying facility which reduced the
coal moisture and coal fines entering the furnace, which helped to reduce
fuel rate, slag rate, and increase production.
• Better flow control during charging and improved charging matrix has
helped in
enhancing the DDBF-1 productivity by 10percent Adoption of soft
blowing philosophy has helped minimize frequent furnace irregularities,
such as hanging and slipping phenomena, in the BF.
• Improvement in tap-hole length from 2.1 to 2.3 m has helped in achieving
longer tapping duration up to 20-22 hrs.
• Improvement in lime quality (reactivity increased from 270 to 320)
through optimization of limestone characteristics and kiln operational
parameters which lead to decrease in consumption from 90 kg/t to 75 kg/t
in converters.
• Reduction of residual metal in Tundish, at the end of the sequence, from
3.5t to 2 t, by
• incorporating modification in bottom design of the Tundish
• Yield improvement by 0.25percent in Hot Strip Mill through reduction in
scale loss from 1.5 to 1.25percent. This was achieved through
optimization of air/gas ration in the reheating furnaces.

Development of Predictive Models:


• Hearth wear model for Blast Furnace
• Energy Balance Model for Blast Furnace
• Solution Loss Carbon (SLC) rate for Blast Furnace

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• Top gas prediction model for Blast Furnace


• Mass balance model for Sinter Plant
• Heat and Mass balance model for HMPT
• Mixing and melting time for ferro-alloys

3. Plan of Action for FY 2010-11:

A beneficiation lab, a pilot coke oven, a product development lab, and


characterization facilities are being set up under R and D. Various off-line
simulation facilities, such as for pelletization and sintering, also being planned.
Such facilities will enable development of new processes and products. Another
thrust area would utilization of solid wastes generated within the plant. A lab
scale/pilot scale facility is under consideration for development of technology for
converting waste into wealth.

4. Expenditure on R and D - FY 2010-11:

• Capital : 14.60 crores


• Recurring : 0.77 crores
• Total : 15.37 crores

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3.4. FINANCE DEPARTMENT [F.D.]

The finance function deals with the procurement of money at the time when it
is needed and its effective utilization in the enterprise. Money is the lifeblood to
purchase of any enterprise, as it is required to purchase machines and materials to
pay wages and salaries to employees and to allow credit facilities to customers.

An important requirement for the success of any business organization is


the provision of sufficient amount of funds or capital. It cannot work unless it
has got sufficient amount at its disposal to purchase machine and materials, build
premises, and meet day-to-day expenses and for several other purpose.

The advent of capital Intensive Techniques has increased the importance of


finance. The ambitions plans of an industrial undertaking ill remain mere dreams
unless adequate finance is available to convert them into reality. Therefore it has
become an important function of management to provide for adequate finance for
the functioning of the enterprise.

For companies, which carry on production and distribution on a large-scale


provision of adequate finance, is a very challenging task. It affects all the
industrial undertakings are set up in the form of companies, the

A problem of finance for modern business is for all practical purposes of


the problem of corporate finance. All the important financial decisions are takin
by the board of decisions of directors of company.
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OBJECTIVES OF FINANCE DEPARTMENT

Since financing is one of the functional area of any business enterprise, the
objective of financial management must be in done with the over all objectives of
the enterprise. The objectives of the finance department should be so devised
they contribute directly towards the achievement of the overall organizational
objectives.

 Ensuring regular and efficient supply of capital to the business


 Ensuring a fair rate of return on capital to the supplier
 Ensuring better utilization of capital be following the principles of
liquidity, profitability and safety.
 Coordinating the activities of the finance department with those of the
other department of the enterprise.

FINANCIAL PLANNING

Financial planning is process identifying a firm’s growth, investments and


financial needs. The firm would need assets to sustain the higher growth in sales
and also need additional current assets to maintain economies of scale. The
process of estimating the funds requirement of a firm and determining the sources
of funds is called financial planning.

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In the financial planning, analyzing the financial alternatives within its


financial policy and deciding the appropriate means of raising funds, and also
analyzing the firms operating characteristics of a product, market, competition,
control system, operating risk etc., to decide about its growth objective.

Forecasting the firm’s revenues and expenses and need for fund based on
its investment and dividend policies. Financial planning prepared the
performance of profit and loss account, balance sheet and fund flow statement.

Growth in sales is an important objective of most firms. An increase in a


firm’s market growth. The firm would need assets to sustain the higher growth.
The firm would need assets plant and machinery to increase its production
capacity. Also, it would need additional current assets to produce and sell more
goods or services. The firm would have to acquire raw materials and convert
them into finished goods after incurring manufacturing expenses. It may have to
sell goods on credit because of the industry norms or to push up sales.

The gives rise to debtors or accounts receivables. The suppliers of raw


materials may extend credit to firm. The firm may use its internally generated
funds to finance current and fixed assets. When the firm grows at high rate,
internal funds may not be sufficient. Thus the firm would have to arise external
funds either by issuing equity or debt or both. The process of estimating the
funds requirements of a firm and determining the sources of funds is called
financial planning.

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STEPS IN FINANCIAL PLANNING

Financial forecasting is the basis for financial planning. Forecasts are merely
estimates based on the past data. Historical performance may not occur in the
future. Planning means what a company would like to happen in the future, and
includes necessary means what a company would like to
happen in the future, and includes necessary action plans for realizing the
predetermining intentions.

The following steps are involved in financial planning:


CORPORATE STRATEGY AND INVESTMENT NEEDS:

Determining the firm’s investment needs and choices, given its growth
objective and overall strategy.

CASH FLOW FROM OPERATIONS:

Forecasting the firm’s revenues and expenses and need for funds based on its
investment and dividend policies.

CONSEQUENCES OF FINANCIAL PLANS:

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Analyzing the consequences of its financial plans for the long-term health and
survival of firm

3.4. MARKETING DEPARTMENT [M.D.]

INTRODU TION:

Marketing is indeed an ancient art. It has been practiced in one form on the
other since the days of Adam and Eve. Its emergence as a management
discipline, however is of relatively recent origin and with in this relatively. Short
period it has gained so much importance and status that today most management
thinkers and practitioners throughout the world view it as the most important of
all management functions in a business.

Marketing which used to be a neglected area during the past years has become
an extremely important function of business management. Efficiency of
marketing planning has become the strong platform for successful operation.

Market oriented strategic planning “is the managerial process of developing


and maintaining a viable fit between the organization objectives, skills, and
resources and its changing market opportunities. The aim of strategic planning
so that they yield target profits and growths”.

The marketing plan if the central instrument for directing and coordinating the
marketing effort. In today’s organizations, the marketing department does not set
marketing plan by itself.
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MARKETING PLAN AT JSW

Marketing planning is formulated mainly by the top level management people.


And senior mangers of each branch officers follow the decision regarding
planning. In JSW before marketing planning the top level management makes a
business plan by considering by annual demand and production capacity and then
year target plan and monthly plan. Senior vice president of marketing (Mumbai)
of JSW makes the marketing planning. This plan is formulated by taking into
consideration orders received
The orders received by giving
a. Personal visit to company near by JSW
b. Traders like Hero Cycles, Calcutta Tubes, and Tube product of India etc.
c. Through Branch Offices by E-mail, Fax etc

The standard let for marketing department is to achieve the sales target for
current year is 2.1 million tons. Once the main plan is formulated by top level
management it is sent to each of its branch office and also the head office located
at Mumbai sends the new plan to each of its branch office.

In keeping touch with the main and each months plans, the marketing manager
of JSW formulates dispatch plan daily for the purpose of distribution of goods

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according to the orders received. The standard given to achieve the sale target of
1, 75,000 tones per month.

OBJECTIVES OF MARKETING PLANNING

• To achieve set standard


• To enjoy profits
• To satisfy customers as it is buyers market.

According to JSW the benefits of marketing planning are:

a. It encourages innovation and creativity

b. Marketing planning improve competitive strength

c. Marketing planning helps to meet the demand

d. It minimizes the risk and uncertainty

e. Marketing planning focuses attention on objectives.

f. Marketing planning helps to reduce the cost of production

g. Changing market opportunity

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MARKETING ARRANGEMENT OF JSW

The strings of the management of the company are in the hands of Board of
Directors who reports to the Vice President. The Vice President looks after the
affairs of the company.
The various units of JSW:

 Raw Marketing Handling Plant [RMHP]


 Pelletization Plant [PP]
 COREX
 Basic Oxygen Plant [BOF]
 Continuous Casting Plant [CCP]
 Hot Strip Mill [HSM]

Senior Vice President (Mumbai) directly controls the marketing network of


JSW. The company has got systematic documentation procedure to control the
dispatch activity.

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After the production, the company sends to its plant regarding consumer
requirements, quality and quantity details, and transportation facility and delivery
date to dispatch department for dispatch the goods at correct time.

The material is loaded into truck or rail without any variation of quality. The
senior officer also checks this at the time of loading.

MARKET:

Marketing is so basic that it cannot be considered a separate function it is


really the whole business sees from the point of view of final results.

Marketing is a view point which looks at the entire business process has a
high integrated effort to discover, create arose and satisfy the customer needs.

Market: It is a place where a goods and services are exchanged; the term
market means to aggregate of all demands for as particular product or service. It
also refers to aggregate of all consumers – existing and potential for product.
JSW has a very good market for almost all market centers.

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CUSTOMER

DIRECT
TRADERS
CUSTOMERS

Direct customers will approach with the bulk order for their utilization.
Traders place the orders for resale and profit out of it.

PHYSICAL DISTRIBUTION:

The process of getting goods to customers has traditionally been called


physical distribution. Creating a customer and creating a product do not
complete the process of marketing, delivering the product the customers is an
equally important part of this process and that is referred to as distribution in
marketing parlance.

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Physical distribution is a process of reaching the product to the consumers. It


coordinates all the activities in the physical flow of product between producer
and consumer.

Physical distribution provides place and time utility to product. It is


distribution that makes the product available at the right place and at the right
time, there by distribution maximizes the company’s change to sell the product
and strengthening its competitive position. It is now becoming prominent cost
area.

There are 2 major components

1. TRANSPORTATION

2. WAREHOUSING

1. TRANSPORTATION:

It is the first among the major function of physical distribution. It adds time
utility and place utility to the product.

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There are 3 main type of transportation the manufacture must also known the
relative costs of mode.
 Roadway Transport
 Railway Transport
 Waterway Transport

The main product of JSW is HOT ROLLED [HR] Coils. The weight of each
coil will be approximately 20 to 30 tons, so the Airway transport is not the best
mode for transportation because it is more costly; capacity will be limit and
cannot carry bulk orders.

The transportation mode of JSW is Roadway and Railway. For Export orders
it is send though Waterway by costal shipping.

JSW has chosen roadway because of following reasons

 Cost is low compared to others


 More accurate
 It eliminates the terminal cost
 Roadways are very convenient to both manufacturers as well as buyers
 JSW use truck as main vehicle for transportation
 JSW basically prefer for road transport when the order is less than 2000
tons.
2. WAREHOUSING:

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Every company has to share finish goods until then sold, because production
and consumption cycles pure match. As a matter of fact, Warehousing
Management has two distinct and equally importing parts.
• The physical job crafting scanning the network of storage points and
• The managerial task of controlling the inventory levels

ADVANTAGE OF MAINTAINING WAREHOUSE:

 To ensure timely delivery


 To see smooth running of production
 To meet the demand
 It helps in balancing demand and supply and in stabilizing the prices
 The product, produced is dispatched to different place according to the
orders received and extra products are stored in the warehouse for future
dispatch.

But JSW doesn’t maintain more stock because their capacity is 2.5 million
tons, out of which their produce 2.1 million tons and 45percent of its production
is down stream (Purchased by Group Company).

JSW is maintaining a small part as a stock in Bangalore; Chennai and


Hyderabad because there concentrating on small market also, the profit margin
high.

3.6 CHANNELS OF DISTRIBUTION

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An industrial goods manufacturer can use its sales force to sell directly to
industrial customers or it can industrial distributors, who sell to the industrial
customers.
0-LEVEL 1-LEVEL 2-LEVEL 3-LEVEL
MANUFACTURER MANUFAC. MANUFAC. MANUFAC.

INDUSTRIAL MANUFA. MANUFAC.


DISTRIBUT. REP.TIVE. SALES BRAN.

INDUSTRIAL INDUSTRIAL INDUSTRIAL INDUSTRIAL


CUSTOMER CUSTOMER CUSTOMER CUSTOMER

JSW has adopted

0-level-JSW receives orders directly from industrial customer.

3-level-JSW sells their product through their branch office only.

SALES PLAN

The company should have correct and clean sales plan and the same plan must
be followed each and every time. Otherwise, the finished output remaining
blocked and the working capital cannot be obtained to perform the day-to-day
activities of the firm.

The interested customers send a letter JSW for enquiry about their availability
of the product, price, terms, condition etc. If they find satisfactory the order will
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be placed which including quality, quantity of the products, mode of transport


terms of payments etc. After receives the purchase order the correspondence
section of the sales department scrutinizes the purchase order and if the same size
is satisfactory, JSW sends a sales order and as acceptance letter.

One of the duplicate copies of the sales order is retained with the dispatch
section and one with accounts department. The purchase then confirms his order
by sending back the acceptance letter duly signed.

JSW after receiving the acceptance scrutinizes it and then the corresponds section
seeks to range for the availability on required goods and duly prepares a ‘Daily
Dispatch Plan’ which is passed on the dispatch section and then carry on.

The invoices prepare including all the charges like the prices of the stock in
addition to the freight, local excise duty and other loading and unloading charges.
The company also adopts certain sales promotion activities direct the product
toward customer.
SALES PROMOTION:

Sales promotion is a key ingredient in marketing campaigns sale


promotion consists of diverse collection of incentive tools, mostly short term,
designed to stimulate quicker as greater purchase of particular product as services
by consumers on the trade.

Sales promotion covers those marketing activities other than advertising,


publicity and personal selling. It is acts a bridge between personal selling and
advertising.
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JSW adopts sales promotion techniques:

• JSW is going to provide price off, a straight discount off the list price on
each case purchased during a stated time period.
• The company developed customer sensitiveness and it provides incentives
and discounts on regular and bulk purchases.
• Sometimes JSW provides transport allowances to buyers.
MARKET SHARE

It is one of the practices followed by many companies for effective


marketing control and also finds out their position in the market. Market share is
“the extend to which a company has captured total actual sales of the industry”.

Market share of JSW is as under:

DOWN
STREAM DOMISTIC EXPORT
MARKET 10percen
SHARE 45percent 45percent t

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MARKET SHARE

DOWN STREAM

DOMISTIC

EXPORT

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MARKET SHARE IN SOUTH INDIA

BANGALORE CHENNAI HYDERABAD


MARKET
SHARE 40percent 30percent 30percent

MARKET SHARE

BANGALORE

CHENNAI

HYDERABAD

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CHAPTER-4
SWOT ANALYSIS

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SWOT ANALYSIS

STRENGTH, WEAKNESS, OPPORTUNITIES and THREATS:

STRENGTH:

1. JSW has good reputation in steel market. It is the result of long experience of
around 3 decades in the steel industry.

2. The major strength of JSW lies with the price. JSW will enjoy reduction in cost
due to very low cost of power (Generated by COREX gas)

3. State-of-art technology followed by COREX plant process makes it a low cost

production of steel in the industry.

4. Production quality is the strength of the JSW

5. Exemptions from sales tax as major dispatches are made from plant site.

6. Support from State Government.

7. JSW planned for inward and outward by Rail + Road, as base foundation for

future growth.

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WEAKNESS:

1. Transportation costs are high due to non-availability of trucks and other means
of transportation easily.

2. JSW is far away from the main market as such it faces problems with the

logistics

3. Problems with efficient Warehousing and out bound Transportation.


4. Lack of proper training given to employees

5. Problems with efficient warehousing and out bond traspotation

OPPORTUNITIES:

1. Located in the centre of Bellary-Hospet region, a high grade iron belt

2. Easy access to the major ports of Goa, Chennai, Mangalore and Mumbai

3. It lies in the vicinity of large potential and unexplored market of Southern India

4. Steel imports and exports are also slated to grow.

5. The automobile sector is also expected to perform well, leading to increase in

demand for steel.

6. Several initiatives in the form of improvement in infrastructure are also


expected to boost demand for steel.

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7. Demand for HR, CR and Galvanized products is expected to beneficially affect


the company’s operations.

8. A special incentive from Indian Railways to Steel Industries is under


consideration.

THREATS:

1. Tough competition from the players such as TISCO, SAIL, ESSAR.

2. Foreign companies like Mittal Steels and POSCO entering Indian Steel

3. Price war may result due to close competition and price being the main
constraint in steel marketing.

4. Dumping of metal from countries like Korea is another major threat.

5. Threats from materials like Aluminum, Plastic and Cement.

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CHAPTER-5
FINDINGS & SUGGESTION

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FINDINGS and SUGGESTIONS

FINDINGS:

1. JSW has good reputation in the steel market having long experience of around 3
decades in the steel industry.

2. The state of art technology i.e. the COREX process has made the low cost
production of steel.

3. It has an easy access through major ports like Goa, Chennai, and Mangalore and
Mumbai.

4. Ranked Fourth amongst the top Indian business houses in terms of profit after
tax is Rs. 1,728 crores. O.P. Jindal Group has developed into a multiphase
organization and is one of the largest steel producers in India with 12 plants in
India, 2 plants in USA, and Jindal also in Canada, Italy, China, Bangladesh and
Thailand.

5. India’s only fully integrating stainless steel plant.

6. Jindal have also pioneered India’s first continuous slab casting machine and
India’s first hot stickle mill to produce hot rolled stainless steel coils.

7. JSW is far away from the main market as such it faces problems with the

logistic.
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8. The company has to have an aggressive promotion policy.

SUGGESTIONS:

1. JSW must enter into new markets.

2. Provide good commission to the trading for future increase of sales.

3. Employees have to be given training for handling their jobs.

4. Training program is necessary to all the workers, to improve the quality of


production.

5. The company must give importance to promotional policies.

6. Dealers meeting should be held once in 3 months to solve the problem of


dealers and to take their valuable suggestion.

7. It should develop customer sensitiveness, give incentives, reduces the cost it


should also be seen that where orders given must supplied at right time and at
right place to the customer so as to maximize customer satisfaction

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CONCLUSION

As we observed that Jindal south west steel limited, Thor


nagallu is showing all round development in all sector. The factory was
established in backward area. It isexpading and has excellent growth.

The organization structure of jindal south steel limited, Thor


nagallu is decentralized and it is line and staff in nature. The purchase,
production and sales departments are responsible for the attainment of
organization goals or objectives.

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BIBLIOGRAPHY

1. References

AUTHOR NAME : ASWATHAPPA


BOOK : PRODUCTION MANAGEMENT
PUBLISHED BY : HIMALAY PUBLICATION
YEAR : 09 EDITIONS (2007)

AUTHOR NAME : PHILIPS KOTLAR


BOOK : MARKETING MANAGEMENT
PUBLISHED BY : PRENTICE HALL
YEAR : 11 EDITIONS (2002)

AUTHOR NAME : SATHYA PRASAD


BOOK : FINANCIAL MANAGEMENT
PUBLISHED BY : HIMALAYA PUBLICATION
YEAR : 2006

2 .Company Profile : Records & Reports of company.


Employee Handouts.
Annual Reports.

3. COMPANY WEB SITE : www.jswindia.com

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ANNEXUR

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PROFIT and LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2009-2010

( Rs in crores)

INCOME: 2010 2009


Domestic Turnover 1,7202.35 13,383.76
Export Turnover 2,948.77 3,680.54
Sale of Carbon Credits 60.21 48.58
20,211.33 17,112.88
Less: Excise duty 1,254.16 1,178.04
Net Turnover 18,957.17 15,934.84
Other Income 13 536.00 271.66
Total income 19,493.17 16,206.50
EXPENDITURE:
Materials 14 11,231.24 9,619.31
Employees Remuneration and Benefits 15 479.54 518.58

Manufacturing and Other Expenses 16 3,175.72 2,815.11

Interest and Finance Charges (net) 17 1,108.01 1,155.62

Depreciation 1,298.66 987.77


17,293.17 15,096.39
Profit before Taxation & Exceptional Items 2,200.00 1,110.11
Exceptional Items
Exchange Loss/(Gain) (Ref. note C(5) of Schedule
18) - 794.78
Profit before Taxation 2,200.00 315.33
Provision for Taxation (including Wealth Tax) 646.71 72.60
Profit after Taxation but before minority
interests and
share of profits/(losses)
of Associates
1,553.29 242.73
Share of (Losses)/Profit of Minority (33.21) (20.53)
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