CHAPTER 1

INTRODOCTION
Iron and steel are two of the most important metals steel is an alloy of iron and other materials, iron can be classified into three types one is pig iron, cast iron and wrought iron. By various methods including heat treatments and the addition of the elements iron and steel can be made in various degrees of hardness. Iron and steel can be softened or melted so that they can be formed in to required shapes. Without iron and steel the way of life of civilized people would be entirely different I serve everybody in homes public building automobile trains, ship , machinery (which produces almost everything we use in our daily life ) bridges, mine equipment and in a variety of application that may range from pin to plane . the use of iron and steel in so many ways in possible only because there is an abundance of iron in the earths crust and because of price low cast production is achieved by efficient operation on a large scale of iron and steel industry. Steel industry is more than a century old, before the economic reforms of the early 1990s the Indian steel industry was a predominantly regulated one with the public sector dominating the industry. Tata steel was the only major private sector company involved the production of steel in Indian. Sail and Tata steel have traditionally the major steel producer of India. In 1992 the liberalization of the economy led to the opening up of various steel industries. This led to the increase in the number of producers, increased investments in the steel industry and increased production capacity. Since 1990, more than Rs 19,000 cores (U$$ 4470.58, million) have been invested in the steel industry of India. The new policy has already borne fruit. The finished steel production in India has gone up from mere 1.1 million tonnes in 1951 to 23.37 million tonnes in 1997-98 despite overall economic slow-down in the country. It has been estimated that the demand for finished steel in 2001-02 would touch 38.68 million tonnes and the projected availability of 38.01 tonnes is almost adequate to meet the domestic demand along with export of six million tonnes. Similarly, by 2006-07, the final year of the tenth plan, the demand for finished steel would be around 48.80 million tonnes, providing adequate surplus for meeting the projected export potential of nine million tonnes. However, there is hardly any scope for complacence over the fact that India continues to be the 10th largest steel producer in the world. In 1997 Indias per capita steel consumption was only

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22 kg which was much below the world average of about 126 kgs. Even if the domestic demand grows up from 34.5 million tonnes to 100 million tonnes in 2025 the industry is unlikely to catch up with the production in the developed countries

OBJECTIVES OF THE STUDY

To understand the background and history of the VSL steels company. To study the organization structure. To study the various function of the organization through McKinleys 7s frame work To have a practical experience of the functioning of the all organization . To provide the SWOT analysis of the company deportment of the

SCOPE OF THE STUDY

This study is limited to V.S.L. steels limited paramenahalli in hiriyur, for the period of one month from 1-8-2011 to 31-8- 2011 the study focused on the various deportment of the organization. The study is confined to gain some knowledge about the organization and the functions of deportments in V S L steels ltd paramenahalli

DATA COLLECTION
For the purpose of the study data has been collected in the form of Primary data and Secondary data. Primary data is first hand data and the data is collected through personal interview with departmental heads and employees of each department. And through classes conducted by the specialists of the VSL steels ltd. Secondary data has been collected through the Internet, company annual reports, various Broachers, Books, Magazines and Web sites.

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LIMITATIONS OF THE STUDY

time constraint period is one month the study is based on within organization only the study is mainly based on secondary data

CHAPTER SCHEME
Chapter -1 This chapter deals with general introduction, introduction, and objective of the study, scope of the study, data collection, and limitation of the study. Chapter 2 This chapter deals with introduction, industry profile, history, and milestone, strength of the company, strategies, location, vision, mission, objectives, and future orientation. Chapter -3 This chapter deals with introduction, company profile. Chapter-4 This chapter deals with Introduction, m7s study Chapter -5 This chapter consist SWOT analysis. And findings suggestion and conclusion

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CHAPTER 2
Theoretical Frame Work-INDUSTRY PROFILE INTRODUCTION
The V S Lad group is one of the oldest and largest suppliers of iron ore from the South Indian State of Karnataka. While the group has been in this business for more than 5 decades, they have diversified the mining business into manufacture of pig iron and various other activities. The V S Lad group has also successfully ventured into Information Technology, Real Estate, the Entertainment industry and Aviation. Their businesses include several IT firms, an Air Cargo company, and Real Estate development firms, Movie and TV production companies, Online Entertainment portals and Clubs. The V S Lad Group aspires to be at the forefront of the booming Indian economy both economically and socially. Under the passionate and capable leadership of Mr. Santhosh Lad, a team of professionals aspire to make V S Lad Group a Leader Steel is an important indicator to analyze the economic development of a country. The steel industry is highly scientific and technology oriented. Technological advancement is very important for the overall health of the steel industry, India's Steel Industry is more than a century old. Before the economic reforms of the early 1990s the Indian steel industry was a predominantly regulated one with the public sector dominating the industry. Indias steel industry went through a rough phase between 1997 and 2001 when the overall global steel was facing a downturn and recovered after 2002. The

major factors that led to the revival of the steel industry in India after 2002 were the rise in global demand for steel and the domestic economic growth in India. India has now emerged as the eighth largest producer of steel in the world with a production capacity of 35MT. almost all varieties of steel is now produced in India. India has also emerged as a net exporter of steel which shows that Indian steel is being increasingly accepted in the global market. The growth of the steel industry in India is also dependant, to a large extent, on the level of consumption of steel in the domestic market. Steel consumption is significant in housing and

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infrastructure. In recent years the surge in housing industry of India has led to increase in the domestic demand for steel. More than 3500 different varieties of steel are available in the steel industry of India. These can however be classified into two broad categories

INDUSTRY PROFILE
Steel industry reforms particularly in 1991 1nd 1992have lead to strong sustainable growth in Indian steel industry. Since its independence, India has experienced steady growth in the steel industry and pushed for its robust development in 1991. A substantial number of economic reforms were introduced by the Indian government. These reforms boosted the development process of a number of industry the steel industry in India in particular which has subsequently developed quite rapidly India continually posts phenomenal growth record in steel production. In 1991, India produced 14.33 million tones of finished carbon steel and 1.59 million tones of pig iron. Furthermore, the steel production capacity of the country has increased rapidly since 1991 in 2010 India produced nearly 47.575 million tones of pig iron .In 1992 the total consumption of finished steel was 14.84 million tones. In 2010 the total amount of domestic steel consumption was 45.926 million tones. With the increased demand in the national market, a huge part of the international market is also served by this industry. Today India is in seventh position among all the crude steel producing countries. India is largest producer of steel in the world. India steel industry has growth by leap and bounds, especially in recent time with India firms buying steel companies overseas. The indicate that the industry will to

scope for steel industry is the huge and industry estimates

grow reasonably in the coming years with huge demands for stainless steel in the construction of new airports and metro rail project.

HISTORY
The first notable attempt to revive steel industry in India was made in 1874 when the Bengal Iron Works (BIW) came into being at Kulti, near Asansol in West Bengal. However, forty-four years before that, in 1830 to be precise, a foreigner, named Joshua Marshall Heath, had set up a small plant at Porto Novo on Madras Coast. Heath produced in his plant pig iron at the rate of forty tones a week. His method of iron-making needed approximately four tones of charcoal to produce one tone of low quality pig iron which proved to be too expensive for Heath to carry on in the face of stiff competition from the British steel industry. The BIW

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made considerable improvement in the process of iron and steel making. It used coke as the fuel instead of charcoal. But the plant fell sick as the source of funds dried up. It was taken over by the Bengal Government and was rechristened as Barakar Iron Works. In 1889 the Bengal Iron and Steel Company acquired the plant and by the turn of the century the Kulti plant became a success story. It produced 40,000 tonnes of pig iron in 1900 and continued to produce the metal until it was taken over by Indian Iron and Steel Company (IISCO) in 1936. For modern Indias iron and steel industry August 27, 1907 was a red-letter day when the Tata Iron and Steel Company (TISCO) was formed as a Swadeshi venture to produce 120,000 tons of pig iron. The TISCO plant at Sakchi (renamed Jamshedpur) in Bihar, started pig iron production in December 1908 and rolled out its first steel the following year. TISCO had expanded its production capacity to one million tonnes ingot by the time the country achieved freedom. The Tatas, as Gandhiji said, represented the "spirit of adventure" and Jamsetji Tata, in the words of Jawaharlal Nehru," laid the foundation of heavy industries in India". The British rulers disfavored this and other attempts to start indigenous industry. It was chiefly with the help of American experts that the Tatas started their industry. Its childhood was precarious but the war of 1914-18 gave it a fillip. Again it languished and was in danger of passing into the hands of British debenture holders. But nationalist pressure saved it. In 1918, soon after the war, Indian Iron and Steel Company (IISCO) were formed. The then Mysore government also decided to start an iron works at Bhadravati. While IISCO started producing pig iron at Burnpur in 1922, the Mysore Iron and Steel Works took about 18 years to start its plant. Meanwhile, the Bengal Iron Works went into liquidation and merged with IISCO. The Steel Corporation of Bengal (SCOB) formed in 1937, started making steel in its Asansol plant. Later in 1953, SCOB merged with IISCO. Prime Minister Nehru firmly believed that "no country can be politically and economically independent unless it is highly industrialized and has developed its resources to the utmost". Nehrus ideas about Indias development were broadly incorporated in free Indias first Industrial Policy Resolution adopted by the Constituent Assembly in 1948. The resolution officially accepted the principle of mixed economy. Industries were divided into four categories. In the first category were strategic industries which were made the monopoly of the Government. In the second category were six industries which included, among others,

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coal, iron and steel. It was decided that new units would be started exclusively by the government in the public sector without disturbing the existing ones in the private sector. Eighteen industries, including heavy castings and forgings of iron and steel, Ferro alloys and tool steel were covered by the third category and the rest of the industries by the fourth. In sum, the government committed itself to the development of basic steel industry while the private sector was to benefit through the establishment of downstream units which would use pig iron, billets, blooms and flat products to be made by the public sector steel plants. In keeping with the spirit of the resolution the Government decided to start a chain of steel plants all over the country in the public sector. The first such plant was set up at Rourkela in Orissa. The second came up at Bhili in Madhya Pradesh. It was followed by a third at Durgapur in West Bengal. Each of these three plants had an initial production capacity of one million tone ingot. Durgapur was followed by a steel plant at Bokaro in Bihar. The onward march of Indian steel did not stop at Bokaro. The fifth public sector steel plant was set up at Visakhapatnam in Andhra Pradesh. As a matter of fact, the country was dotted with steel and steel-related plants in public and private sectors, like Alloy Steel Plant, Salem Steel Plant, Kalinga Iron Works, Malavika Steel Ltd., Jindal Vijaynagar Steel Ltd., to name only a few. About the same time TISCO launched its two-million-tone expansion programmer. The Governments Industrial Policy had undergone changes once in 1956 and then in 1991. The resolution modified in 1956 brought changes in the category pattern and listed more industries for the public sector than did the earlier one, though it was not harsher towards the private enterprise. In the new industrial policy announced in 1991 iron and steel industry, among others, was included in the list of industries reserved for the public sector and exempted from the provision of compulsory licensing. With effect from May 24, 1992 iron and steel industry was included in the list of high priority industry for automatic approval for foreign equity up to 51% (now 74%). Export-import regime for iron and steel has also undergone major liberalization. The freight equalization scheme was withdrawn removing freight disadvantage to States located near steel plants. The new policy has already borne fruit. The finished steel production in India has gone up from mere 1.1 million tons in 1951 to 23.37 million tonnes in 1997-98 despite overall economic slow-down in the country. It has been estimated that the demand for finished steel in 2001-02 would touch 38.68 million tonnes and the projected availability of 38.01 tonnes is almost adequate to meet the domestic

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demand along with export of six million tonnes. Similarly, by 2006-07, the final year of the tenth plan, the demand for finished steel would be around 48.80 million tonnes, providing adequate surplus for meeting the projected export potential of nine million tonnes. However, there is hardly any scope for complacence over the fact that India continues to be the 10th largest steel producer in the world. In 1997 Indias per capita steel consumption was only 22 kg which was much below the world average of about 126 kgs. Even if the domestic demand grows up from 34.5 million tons to 100 million tonnes in 2025 the industry is unlikely to catch up with the production in the developed countries. The redeeming feature is the cost competitiveness of Indian steel in the global market. According to World Steel Dynamics, the total cost of steel production in the USA is $510 per metric tone while in Japan it is $550, in Germany $557, in Canada $493 and in India it is $497. This is because of high material cost due to high excise and import duties. Reduction of cost on these accounts will make Indian steel more competitive in the world market. Indian steel can reasonably expect a good market in the neighboring countries now that the Asian economy is looking up. In conclusion, it can be said with a certain measure of confidence that Indias iron and steel industry which had a glorious past and has an uncertain present may now look forward to a bright future. The production of iron by humans began probably sometime after 2000 BC in south-west or south-central Asia, perhaps in the Caucasus region. Thus began the Iron Age, when iron replaced bronze in implements and weapons. This shift occurred because iron, when alloyed with a bit of carbon, is harder, more durable, and holds a sharper edge than bronze. For over three thousand years, until replaced by steel after 1870 BC, iron formed the material basis of human civilization in Europe, Asia, and Africa. Steel was discovered by the Chinese under the reign of Han dynasty in 202 BC till 220 AD. Prior to steel, iron was a very popular metal and it was used all over the globe. Even the time period of around 2 to 3 thousand years before Christ is termed as Iron Age as iron was vastly used in that period in each and every part of life. But, with the change in time and technology, people were able to find an even stronger and harder material than iron that was steel. Using iron had some disadvantages but this alloy of iron and carbon fulfilled all that iron couldnt do. The Chinese people invented steel as it was harder than iron and it could serve better if it is used in making weapons. One legend says that the sword of the first Han

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emperor was made of steel only. From China, the process of making steel from iron spread to its south and reached India. High quality steel was being produced in southern India in as early as 300 BC. Most of the steel then was exported from Asia only. Around 9th century AD, the smiths in the Middle East developed techniques to produce sharp and flexible steel blades. In the 17th century, smiths in Europe came to know about a new process of cementation to produce steel. Also, other new and improved technologies were gradually developed and steel soon became the key factor on which most of the economies of the world started depending. The history of steel-making in India can be traced back to 400 BC when the Greek emperors used to recruit Indian archers for their army who used arrows tipped with steel. Many more evidences are there of Indians perfect knowledge of steel-making long before the advent of Christ. Archaeological finds in Mesopotamia and Egypt testify to the fact that use of iron and steel was known to mankind for more than six thousand years and that some of the best products were made in India. Among the widely-known relics is the Iron Pillar near Quota Miner in Delhi. The pillar, built between 350 and 380 AD, did not rust so far an engineering marvel that baffles the scientists even today. Yet another engineering feat is the famous Sun Temple at Konark in Orissa, built around 1200 AD, where steel structural were used for the first time in the world. These were the halcyon days when India flourished in all directions and when its prosperity was a matter of envy for the foreigners. But as ill luck would have it, Indias prosperity gave way to poverty after the advent of the foreign rule. Indias indigenous industry languished because of a deliberate policy of the colonial rulers to make the country only a supplier of raw materials. Steel Role plays a vital role in the development of any modern economy. The per capita consumption of steel is generally accepted as a yardstick to measure the level of socio-economic development and living standards of the people. As such, no developing country can afford to ignore the steel industry.

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INDUSTRY STRATEGY
Government targets to increase the production capacity from 56 million tons annually to 124 MT in the first phase which will come to an end by 2011- 2012 currently with a production of 56 million tones Indian accounts for over 7% of the total steel produce globally , while it account about 5% of global steel consumption . The steel sector in Indian grew by 5.3 in

May 2009 globally India is the only country to post positive overall growth in the production of crude steel at 1.01% for the period of January march in 2009

EXPORT
About 50% of the steel produced in Indias is export of steel during April-December 2009 was 64.4 MT in December 2008. In February 2010 steel export increased by 17% to 12.6 MT from 10.8 MT in the same month last year more than 50% of steel from India is exported to china. The governments decision to reduce export duty on iron ore lumps from 15% to 5% has given a major boost to the export of steel

STRENGTH
There are many strong point of the industry that makes it one of the leading names in the global steel industry. The rate of labor wages in India is among once of the lowest in the

world thereby making large scale production feasible. The boom witnessed in the automobile industry has ensured that the demand for steel is increasing gradually and will continue to do so in the near future. There is huge manpower in India which is another reason why steel production I India is high and the industry is doing pretty well both national and international

INVESTMENT
Numerous steel companies some major projects in the pipeline to invest in India steel industry. Steel companies have earmarked more than 100 million USD for the setting up of sponge iron unites in koppal and Bellary in Karnataka. As per investment commission of India more than 30 billion USD are in the pipeline for investment over the next five year,

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THE GLOBAL STEEL INDUSTRY

The current global steel industry is in its best position in comparing to last decades. The price has been rising continuously. The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace. The steel industry is enjoying its 6th consecutive years of growth in supply and demand. And there is many more merger and acquisitions which overall buoyed the industry and showed some good results. The subprime crisis has lead to the recession in economy of different countries, which may lead to have a negative effect on whole steel industry in coming years. However steel production and consumption will be supported by continuous economic growth.

STEEL PRODUCTION IN INDIA

India is one of the few countries where the steel industry is poised for rapid growth.

Indias share in world production of crude steel increased from 1.5% in 1981 to around 3.5 % in 2004. While plant closures and privatization are rare in India, the private sector is considered to be the engine of growth in the steel industry and technological changes and modernization are taking place in both the public and the private sector integrated steel plants in India. Steel production of India accounted for 14.33 million tons in 1990-91, which gradually increased to 36.12 million tonnes in 2003-04, as shown in Table III. The Indian steel industry got a giant importance in the recent past when the Tata Steel purchased the Corus steel. Today India plays a significant role in the production of steel in the world. The Indian steel industry is growing at 8.74 % of CAGR. Steel demand continued to remain upbeat in 2008-2009 with consumption of finished steel growing by a decent 6.8% during April-may 2008. During a same period import surged by a healthy 10 % to 0.7 million tons While export reported a 33% decline to 0.6 million tones. While imports and consumption of finished steel reported a healthy rise, production of the steel continued to rise at a tepid pace. During April 2008 finished steel output rose by a modest 3.8 %. Further in may it increased by 5.2%. Aggregate production growth during April-may stood at 5.1 % In view of no major capacities coming on stream we estimate finished steel production to touch 60 million tons in 2008-2009. On the basis for last year of 52.7 million tones, the steel production growth for 2008-2009 comes to around 14 %. However the joint plant committee has been revising its annual figures upwards for the last 2-3 years. In the event of an upward revision in the figures

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of 2007-2008, the actual growth in steel production in 2008-2009 would turn out to be less as compared to our estimates.

MILESTONE
1918 : Construction work started for setting up a Wood Distillation plant of 200

tonnes per day and one Charcoal based Blast Furnace of 60 tonnes per day 1923 : Mining of Iron Ore started in Kemmannugundi Iron Ore Mines, a

captive mine of the Company. (Production of Pig Iron started in Charcoal Blast 1927 1936 : : Furnace). General Foundry commissioned. Pipe Foundry commissioned. steel making through Open Hearth a furnace started Light Selection

Mill for rolling structural steels started. 1938 1942 : : Cement plant Commissioned Steel Foundry commissioned. Two 1500 KVA Ferro Alloy Plants

started at Mysore. 1943 1948 1950 : : : Open Hearth B Furnace started. Plate Sleeper Foundry commissioned. Ferro Alloy Plant shifted to Bhadravati from Mysore. 9000 KVA Ferro

Silicon furnace started. 1952 1955 1958 1962 : : : : First 100 tonnes per day capacity Electric Pig Iron Furnace started. Second 100 tone per day capacity Electric Pig Iron Furnace started. Cast Iron Spun Pipe Plant started. Two 12000 KVA Ferro Silicon Furnace started. Works became a

limited company on April 1, 1962. Sintering Plant started at Tanigeblyle.

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1964

Bollming and Heavy Section Mill commissioned. Plate sleeper

Foundry started. 1965 : LD Plant started. First 20 tonnes Electric Arc Furnace commissioned.

Oxygen and LC plant started. 1966 : 6 tones EAF started at Steel Foundry. Induction Furnace started at

General Foundry. New refractory Department started. 1967 1968 : : Second 20t Electric Arc Furnace Started. IAS & ICS Commissioned. 8t Electric Arc Furnace started. 1967

second 20t Electric arc Furnace started. 1970 1971 1972 1976 : : : : Combined Bar and rod Mill started. two new 200t per day capacity Electric pig Iron Furnaces started. Heat treatment Shop started. Name of the Company changed to Visvesvaray Iron and steel

Limited on February 16, 1976. 1977 1983 1985 1989 1992 1995 1997 1998 1999 : : : : : : : : : Forge Plant commission with Long Forging Machine and Forge Press. VD/VOD Unit Started. CCM Commissioned VISP was taken over as subsidiary of SAIL. LRF 1 commissioned. Blast Furnace (BF) Blown in on February 24, 1995. Certified to ISO 9002 for Rolled Route and Pig Iron in April 1997. VISP merged with SAIL in December 1998. Installed three numbers Electric heating Tempering Furnaces.

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1999 2003 2005 2007 System 2007

: : : :

Electro Magnetic Stirrer commissioned at CCM Plant on 15-9-1999 Upgraded to ISO 9001-2000 Quality Management system. Conversion of II 20 T EAF to LRF 4. Certification of VISL for ISO / TS 16949: 2002 Quality Management

Establishment of Magnetic Particle Inspection of rolled products for improving the surface quality.

2008 2009

: :

Development of Wheel and Axle assembly for Bhili Steel Plant Establishment of new SMS Plant of 85 cores in VISL.

VSL has successfully erected more than three million square meters of bridge deck in the Asia-Pacific region over the past decade. The Company provides skilled and trained staff with a core of 100 bridge specialists, an experienced technical centre and the ability to develop new methods, equipment and materials.VSL is also involved in sustainable construction and many of its innovations help achieve this. Specialist equipment is designed to be as modular as possible to allow reuse in different configurations. The opening of the VSL Academy, a unique post tensioning training centre to ensure the high level of VSL staff know-how in all countries, will provide ongoing development of both individual and corporate knowledge and skills. Local knowledge is also important: all VSL managers are entrepreneurs with in-depth knowledge of their own markets and are committed to providing creative and safe solutions together with top-quality services. All VSL companies benefit from the exchange of expertise throughout the international network. VSL continues to focus on the search for methods and technologies that will maintain its competitiveness and ensure its enduring market success. The Group is justifiably proud to present a selection of the most outstanding examples from its extensive portfolio of exciting projects, executed the world over during the last five decades.

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COMPANY VALUES
All VSL companies benefit from the unique international exchange of expertise within the network. All VSL managers are entrepreneurs with in-depth knowledge of their local markets MISSION VSLs mission was to satisfy ever-increasing demands in terms of quality, durability and structural integrity on its projects, with the constant aim of meeting client expectations to an even greater degree. This drive led to successive major breakthroughs that served to bolster the Group's leading position and a commitment to providing creative and safe solutions together with top quality services.

MAJOR PLAYERS OF STEEL IN INDIA

PUBLIC SECTOR STEEL AUTHORITY OF INDIA LIMITED (SAIL)

Steel Authority of India Limited (SAIL) is a company registered under the Indian Companies Act, 1956 and is an enterprise of the Government of India. RASHTRIYA ISPAT NIGAM LTD. (RINL)

RINL, the corporate entity of Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in Andhra Pradesh. MSTC LTD.

MSTC Ltd. (formerly Metal Scrap Trade Corporation Ltd.) was set up on the 9th September, 1964 as a canalizing agency for the export of scrap from the country. FERRO SCRAP NIGAM LTD. (FSNL)

FSNL is a wholly owned subsidiary of MSTC Ltd. with a paid up capital of Rs. 200 lakh.

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HINDUSTAN STEELWORKS CONSTRUCTION LTD. (HSCL)

HSCL was incorporated in June 1964 with the primary objective of creating in the Public Sector an organization capable of undertaking complete construction of modern integrated Steel Plants. MECON LTD.

MECON is one of the leading multi-disciplinary design, engineering, consultancy and contracting organization in the field of iron & steel, chemicals, refineries & petrochemicals, power, roads & highways, railways, water management, ports & harbors, gas & oil, pipelines, non ferrous, mining, general engineering, environmental engineering and other related/ diversified areas with extensive overseas experience.

PRIVATE SECTOR
The private sector of the Steel Industry is currently playing an important and dominant role in production and growth of steel industry in the country. Private sector steel players have contributed nearly 67% of total steel production of 38.08 million tones to the country during the period April-December, 2007. The private sector units consist of both major steel producers on one hand and relatively smaller and medium units such as Sponge iron plants, Mini Blast Furnace units, Electric Arc Furnaces, Induction Furnaces, Rerolling Mills, Coldrolling Mills and Coating units on the other. They not only play an important role in production of primary and secondary steel, but also contribute substantial value addition in terms of quality, innovation and cost effective. TATA STEEL LTD.

Tata Steel has an integrated steel plant, with an annual crude steel making capacity of 5 million tons per annum located at Jamshedpur, Jharkhand. In January 2007 India's Tata Steel made a successful $11.3 billion offer to buy European steel maker Corus Group PLC.

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ESSAR STEEL LTD. (ESL)

Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a footprint covering India, Canada, USA, the Middle East and Asia. JSW STEEL LTD.

JSW Steel is a 3.8 MTPA integrated steel plant, having a process route consisting broadly of Iron Ore Beneficiation Pelletisation Sintering Coke making Iron making through Blast Furnace as well as Cortex process Steel making through: BOF- Continuous Casting of slabs Hot Strip Rolling Cold Rolling Mills. ISPAT INDUSTRIES LTD. (IIL)

IIL has set up one of the largest integrated steel plants in the private sector in India at Dolvi in Raigad District, Maharashtra with a capacity to manufacture 3 million tons per annum of hot rolled steel coils (HRC)

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CHAPTER 3
COMPANY PROFILE
INTRODUCTION
When, Indian government decide to enter in the field of iron and steel production, it decided broadly not run the firm as a departmental undertaking, although initially, steel project administration was directly under a ministry of the central government .Hindustan steel was formed as a private limited company in 1954. The committee of public undertaking review of the question of setting up a holding company for steel as a public sector which contribute surplus in the economy. Based on these considerations, steel authority of India limited was approved by the government in

December 1972 an authorized capital of Rs 2000 crores. In 1978 SAIL was restructured as an operating company. Steel authority of India limited (SAIL) in one of the largest state-owned steel makers in India. With a turnover of
48,681

core (US$11.05billion), the company is among the top five

highest profit earning corporate of the country it is a public sector undertaking which trades publicly in the market is wholly owned by government of India and acts like on operating company incorporated on January 24, 1973, SAIL as more then 1,31,910 employees. The companys current chairman is C.S Verma. With an annual production of 13.5 million metric tons, SAIL is the 16th largest steel producer in the world.

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COMPANY PROFILE

Name

VSL steels ltd No. 539, "Ashwini Complex", IV floor CMH Road, Indiranagar, HAL 2nd Stage Bangalore, India 560 038 Tel: +91 (0)80 40811111, 40811112 Fax: +91 (0)80 40811113

Establish Plant Address

; :

January 5 2007 VSL steels limited Paramenahalli village Hiriyur Taluk, Chitradurga district Karnataka, India -572143

Tel Fax Website Email

: ; : ;

+91(0) 8193-203079-203080 91 (0)8193 -203075 www.vslsteels.in general: info@vslsteels.in Marketing: marketing@vslsteels.in

Product

pig iron, skull, slag

VSL Steels Limited is a manufacturer of high quality Pig Iron and is a flag ship company of the trusted "VSL GROUP". VSL is known for its professionalism, Quality, and Competence and is one of the pioneers in mining industry. VSL Steel Company is a Private Sector Organization that offers services in Iron and Steel with Annual Total Turnover of 250-

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500 Crs and with Employee Strength of 251-500. VSL is a leading real estate developer in India. They are committed to quality and deliver at the highest standards. VSL has successfully entered more than three million square meters of bridge deck in the Asia-Pacific region over the past decade. VSLs Major Project division provides: skilled and trained staff with a core of 85 bridge specialists, an experienced technical centre, an ability to benchmark new methods, new equipment and new materials; and specialist equipment designed as modular as possible for reuse in different configurations. VSL is also committed to offering an innovative contracting approach enabling the company and the contractor to focus on what is best for project. Examples of this include the Stonecutters Bridge project in Hong Kong, Alfords Point Bridge in Australia and the Puente Baluarte in Mexico. VSL today is one of the premier alloys and special steel producer in the country and it has tow integrated production facilities, starting with basic raw materials such as iron ore, lime stone, ext. beside alloy and special steel, the products mix included ferroalloy, for steel and pig iron. VSL steel is mostly used by railway and defense sectors besides different heavy industries including steel plants. Some of its very specialized steel is also used for our atomic plants and reactors. VSL has successfully entreated more than three million square meters of bridge deck in the Asia-Pacific region over the past decade. The Company provides skilled and trained staff with a core of 100 bridge specialists, an experienced technical centre and the ability to develop new methods, equipment and material. Today VSL also offers an innovative contractual approach that enables the company and the contractor to focus on what is best for project VSL continues to focus on the search for methods and technologies that will maintain its competitiveness and ensure its enduring market success. The Group is justifiably proud to present a selection of the most outstanding examples from its extensive portfolio of exciting projects, executed the world over during the last five decades. VSL has continued to maintain close contact with its clients, to be attentive to their needs and to extend its range of services. The prestressing company of 50 years ago has gradually evolved into a multi-services group specializing in the design and construction of complex turnkey projects. The schemes adopt VSL techniques and processes and often include bespoke building and erection methods such as tailor-made launching gantries for the rapid construction of precast segmental structures

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VSL continued its geographic expansion during these years. One of the most significant developments was the establishment of VSL Corporation. This company boosted the Group's growth during the 1970s through its promotion of the VSL monostrand prestressing system to the building industry. Use of the Slab System" was in response to American market demand in a market sector that showed tremendous potential. Similar considerations encouraged VSL Australia to introduce the "Flat Slab System" - slab prestressing using cable injection into its domestic market.

PROMOTERS DETAILS
The promoters of VSL group from the board of director of VSL steels limited. VSL have a mission to become the leading metal providers to Indian and global steel market. VSL group have varied interest ranging from mining, export wind power, real estate etc PROMOTERS Dr. Ekanth V. Lad chairman and managing Director Aged 63 is the CMD and holds MBBS and DCH degree and has practiced medicine successfully for over two decades besides being involved with business. Shree. Santhosh s lad director Aged 33 is a commerce graduate and has been with VSL for the more than a decade. He is very activity in politics and is currently member of legislative assembly from Sandur, Bellary (DT) Karnataka (st) Shree. Viswas u. lad director Aged 32 is a commerce graduate and has been with v s l for more than a decade. He handled planning and operation of mining and exports of VSL group. Shree. Vinay E. lad executive director Aged 26 is a commerce graduate and is associated with VSL from a very young age. He has been with SLR plant ever since VSL has taken over the plant. He is primarily involved with day to day operation.

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BACKGROUND OF THE COMPANY

Sir vital rao shivaram lad steels plant, a unit of VSL is located at paramenahalli in hiriyur, a small town, Nearest Town 10 Km from Hiriyur, 170 km (nearest air port) northwest of Bangalore, Nearest Sea port 325 km at New Mangalore Nearest Railway 55 km at

Chitradurga city in the state of Karnataka. VSL Steels is a Private Sector Organization that offers services in Iron and Steel with Annual Total Turnover of 250-500 Crs and with Employee Strength of 251-500.VSL steels limited (formally, SLR steels limited) is manufacturer of high quality pig iron and is a flag ship company of VSL GROUP VSL is known for its professionalism., quality, and competence and is of the pioneers in mining industry. VSL group, in its endeavor to expand its business, is delegated to be part of the core iron & steel industry VSL Steels Limited has a blast furnace of 262 m3 capacity of MECON technology with the capacity commercial pig iron production started from January 5 .2007 . the plant has production 1, 50,000 tones of PIG IRON Per Annum VSL Steels Limited is a manufacturer of high quality Pig Iron and is a flag ship company of the VSL GROUP". VSL is known for its professionalism, Quality, and Competence and is one of the pioneers in mining industry. VSL Steels Limited has a mini blast furnace, of designed by MECON with 262m3 capacity. The plant has an annual production capacity of 1, 50,000 MT of PIG IRON. which will be enhanced to 2,20,000 MT per annum by commission of our new sinter plant.VSL steels facilities are among the most advanced of its kind in the country . The company has access to finest mineral resources in the country with its proximity to the mineral rich district of Bellary and chitradurga.

VSL GROUP
VSL group owned V S LAD and sons, an ISO 9001:2008 & 14001:2004 certified mining firm, located at laxmipura village, Sandur has setup pig iron plant as a step into forward integration and value addition to iron ore it produces. VSL is known for its professionalism, quality and competence and is one of the pioneers in the mining industry ever since it was started in 1956 by the late sir vital rao shivaram lad. VSL is one of the leading producer and exporters of iron ore, mining around 3 million tons per annum. VSLS commitment to sustainable development and community service is as deep as its mines. It has set new

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benchmark in the industry in its drives towards a forestation, air and water quality management, in providing health care and rural education.

NATURE OF BUSINESS
VSL steels ltd is one of the steel manufacturing companies in India. Which is engaged in producing pig iron, skull, slag which in foundries and cement industry

OBJECTIVES OF THE COMPANY

Consistency in quality of pig iron Latest technology of production Captive power plant 4MW Coke over plant Pig iron analyzed by spectrometer for accurate chemical analysis Stacking of pig iron heat-number wise to ensure supply as per customer specification Composition exactly matching to the test certificate Experienced management and technical team

VISION, MISSOEN, AND VALUES

Vision
To be the Indias most prolific manufacture of pig iron, steel and related delivering high quality metal solution product by

Mission
To be synonymous with quality, commitment, value to continuously expand and upgrade operation.

VALUES
Integrity;

Conduct our business with fairness

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Excellence;

Constantly strive to active the highest possible standard in day to day operation and in the quality of the goods and services we provided Responsibility;

Continue to be responsible sensitive to communities and environments in which we work to ensure what comes from the people goes back to the people many times over.

QUALITY
To achieve our quality goals, VSL steels has set up a quality assurance lab with modern equipment along with the well qualified staff in order to get good quality of pig iron , the raw material are checked to ensure their quality by the applicable Indian standard (IS) methods. The pig iron produced is checked for its quality by an optical emission spectrometer. As the analysis reports are given instantaneously by spectrometer, its help the operation department to take immediate corrective actions so as to control the quality of pig iron being produced. The quality of process water and CPP water is checked by HATCH instrument The organization is making all efforts to meet the strict quality standard along with adhering to environmental and safety laws. As recognisation to this endeavor, VSL steels limited has been awarded ISO 9001:2000 (or quality standard) & ISO 14001; 2004 certificates by Perry Johnson registers, INC.

QULITY POLICY
VSL steels ltd ,are committed to achieve total customer satisfaction by supplying quality pig iron as per customers requirement through quality assurance process along with effective work practice.

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ISO 9001
The most widely recognized standard is the ISO 9000, a basic quality management system that can be used in industries of any size, anywhere in the world. Registration to ISO 9001:2000 (or other quality standard) provides objective proof that a business has implemented an effective quality management system, and that it satisfies all of the requirements of the applicable standard. An external impartial expert called a register conducts an onsite audit to determine whether or not a company is in conformance to the standard. If they are found to be in conformance, they will be issued a certificate showing their address, scope of operational and the seals of the accreditation bodies that give the registered its legitimacy

ISO 14001
ISO14001 is a global standard for environmental management system. The goal of the ISO1 14001 standard is to give the top management of any organization a frame work for managing environmental impacts ISO 14001 is a product of the international organization (ISO). ISO 14001 is the worlds first generic, internationally recognized standards, ISO 14000 standers ISO 14001 is the actual standard to which companies get registered.

PRODUCT PROFILE
VSL Steels produces various grades of Pig Iron which are utilized by the foundry industry to produce superior grade and high quality precision castings. They are catering to the needs of foundry industry throughout India from Tamil Nadu to Punjab. Their quality is well accepted because of the consistency of specification of the Pig Iron supplied. The products produced by VSL are almost semi-finished goods and they are as follows. PIG IRON- A product in solid (lumpy) form obtained upon solidification of Hot Metal in Pig Casting Machine. Its a pure and well-shaped form of iron which is used in foundries. SKULL- It doesnt have a well which is also used in foundries and is a form of semifinished good.

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SLAG- Its a by-product of pig iron, used in cement industry.

VSL Steels Limited has some standard specifications in their products. In addition to standard specifications, it can produce pig iron with chemical composition according to customer needs.

AREA OF OPERATION
The plant is located at: Vani Vilas Road, Paramenahalli Village Hiriyur Talk, Chitradurga District Karnataka State India- 572143

Nearest Town: 10 Km from Hiriyur Nearest Sea Port: 325 km at New Mangalore Nearest Air port: 170 km at Bangalore International Airport Nearest Railway Station: 55 km at Chitradurga

The plant has an annual production capacity of 1, 44,000 MT of Pig Iron, which will be enhanced to 2, 16,000 MT per annum by commission of new Sinter Plant. Currently, the company is operating within national localities. There are no exports from the company. It is marketing its products in Punjab, Tamilnadu, Andhra Pradesh, Maharashtra, Gujarat, Delhi and Karnataka.

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COMPETITORS INFORMATION
Some of the competitors for VSL steels Ltd in national market are as follows Jindal Kirloskar Shanthvahan steels Kalyanni Jindal Vijaynagar steels ltd Essar steels

PARTIAL CLIENT LIST

Electro Steel Castings, Chennai Laxmi Machine Works, Coimbatore Indoshell Mould Limited, Coimbatore Sound Castings Pvt Limited, Kolhapur Ghatge Patil Industries, Kolhapur BMM I spat Limited, Hospet Pearlite Liners Limited, Shimoga

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WORK FLOW MODEL

Raw material receipt Weighments at plant Weigh Bridge

Raw material yard

Tipper movement

Ground hopper Stock house conveyor Stock house day bins

Screening of raw material

Iron ore coke fines

Weighing hoppers

BFC 1 conveyor Fines bunker BFC 2 conveyor

Storage yard

Dispatch

REBO/small bell hopper Charging hopper

Air

Blower

Stoves
BF Gas Dust Catcher Venture 1&2

Hot blast
Hot metal Hot metal ladels Finished product dispatch Pig ladels casting iron Pig scrap Slag Slag granulation Storage yard skull

Moisture separator

Workflow model of VSL Steels Limited

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MANUFACTURING PROCESS
The hot air required for the chemical reactions are blown into the furnace at an average rate of 40000Nm3/hr by 4 - 5 HT motor driven blowers. The air before entering into the blast furnace is heated up to 1100 using 3 Stoves. The stove refractory checkers, which store heat, are heated by combustion of air and blast furnace gas inside stoves at optimum proportions. Blast furnace gas is a by-product the furnace and carries around 20% CO which makes it a cheap and efficient fuel. The heat thus stored is passed onto the cold air blown by the blowers raising its temperature to 1100 making it suitable for use in the blast furnace. The counter current movement of blast air and raw materials facilitates the reduction process of iron ore. The liquid iron (Hot metal) produced collects at the bottom of the furnace and above which liquid slag, which is lighter, is collected. Both slag and hot metal are drained out through a tap hole at regular intervals in Cast House. The hot metal is collected in ladles. Whereas the slag is granulated into powder form in a Slag Granulation Plant. The blast furnace gas generated inside the furnace is cleaned at Dust catcher and Gas Cleaning Plant (GCP). Gas is washed in GCP by water spray. The cleaned gas is then used in stoves and captive power plant as a cheap source of fuel. Any excess gas is flared through flares tack to the atmosphere after flaring. Dedicated water pumping arrangements provides cooling water for the different cooling areas of the furnace. Cooling is essential in view of the refractory shell life of the furnace and life.

Pig Iron Casting

The ladles carrying hot metal are transferred to a Pig Casting Machine (PCM) and placed on a pedestal using a 50 Ton EOT crane. In the PCM, the hot metal is cast into Pig Iron of max 9Kg weight. The arrangement for this includes a double strand casting chain carrying 250 moulds in one strand. The strands are driven by an electric drive. The ladle is tilted using the EOT crane and the hot metal is directed into the moulds by a runner system. Air-cooling and water-cooling is provided for the casting chain. The pig Iron generated by the PCM is collected in 4-5 tractor trailers, weighed At Weigh Bridge and stocked heat wise at Pig Iron stock yard.

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Process Control
Pre requisite quantity of raw material is fed into the furnace by means of electronic weighing system consisting of load cell, batching controller and programmable logic controllers. The whole system is atomized using PLC (Siemens make) and computers for overall monitoring and control. To have a finest control on quality of hot material BF gas flame temperature (RAFT) is controlled and continuously monitored from control room through PLC with continuous humidification, blast oxygen enrichment and steam injection.

ACHIEVEMENTS AND AWARDA

Rajiv Gandhi award 24-08-2009 Indira Gandhi award 18-11-2009 Bharata guru award 17-01-2010 Indian achievement award 14-03-2010

COMPANYS FUTURE GROWTH AND PROSPECT

VSL steels have aggressive plans for exemption of its operation, capacity product offering. We plan to become an integrated steel plant with production capability of 0.4 million tons of steel by in this year (2011) with on investment of INR 800milion.in phase II, we plan to further increase the capacity to 1 million tons by 2015.In according with the expansion program the company plans to install Additional blast furnace to produce more hot metal Coke oven plant with captive power plant Sinter plant Steel melting shop with rolling mills, Our end products will be TMT bars and special alloy billets

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INFRASTRUCTURE FACILITY
1) Canteen
According to the section 48(1) it is obligatory on the party of every factory to provides canteen facility where in more than 200 employees are employed and hence VSL also provides canteen facility for its employee, which is well constructed furnished with good furniture, equipment and also good accommodation facility.

2) Safety
VSL steels recognized the importance of safety and health of its employees. We are committed to follow safety procedure to reduce all identified operational hazard, risk to employees, contractor and visitors. Training is provided for all employees to work safety to provide injury to themselves and others, and avoid damage to property. A well equipped first aid and occupational health center is operational round the clock. It is supervised by qualified and experienced company medical officers. The company employs currently over 300 employees VSL steels currently around 500 contract employee VSL steels is an equal opportunity employer

3) Rest Rooms
In VSL rest rooms is suitable in all deportment. During the interval the employees can go there have relax.

4) Parking Facility
VSL has provided parking facility separately for bikes and cars of their employees

5) Traveling Facility
VSL provided two buses and two vans for pick and droop for employees to the company

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ENVIRONMENT CARE
VSL Steels has been awarded ISO 14001:2004 certificate for Environment Management System.

1) Water
The plant is designed on zero discharge principle. The processed water is re-circulated and make-up water is added to take care of the process losses.

2) Air
The hot gas generated in the blast furnace is cleaned to reduce the dust content to less than 5mg/NM3. The cleaned gas is used in generation of Power and Stove heating. Surplus gas is flared through a flare stack. To control the dust we have asphalted all the major roads within the plant. The approach road from Highway to the plant is also asphalted. Water tanker, water sprinklers and rain guns have been installed to wet roads and stock yards for dust suppression.

3) Green belt Development

VSL Steels has used more than 33% of available land for green belt. The green belt, which acts as a dust barrier, is developed by landscaping of about 35000 sq ft. Over 10000 saplings have been planted inside the factory premises and also in the surrounding vacant lands. 4) Rain Water Harvesting we are using rain water harvesting methodologies for recharging underground water table. We also plan to rejuvenate the structures erected by the watershed development department outside our plant premises. 5) Sewage Treatment Plant Sewage Treatment Plant of 32KLD has been constructed. And experienced Company Medical Officers

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CHAPTER 4
Mc KINLEYS 7s FRAME WORK
INTRODUCTION
The 7s frame work has first appeared in the book The art of Japaneses management by Richard Pascal and Anthony authors in 1981. The two authors were looking at how Japanese industry had been so successful at around the same time Tom Peters and Robert Waterman were exploring what made a company excellent. The 7S model was born at meeting of the four authors in 1978. It then appeared in the book In search of excellence by Peters and Waterman in 1982. Subsequently it was taken up as a basic tool by the Global Management Consultancy Company McKinseys to diagnose the cause of organizational problems and to formulate programs for improvement and then on it became famous as McKinsey 7S model. According to this model there are seven basic dimensions which represent the core of managerial activities. These are the levers, which the executives use. The originators of the model have coined the managerial variables with words beginning with the letter S so as to increase the communication power of the model. The seven Ss are: The 7s framework for management analysis was developed by McKinley and company. 7s model provides an effective way of analyzing an organization, in terms of dynamic relationship among 7 key elements namely structure , system, strategy, style, staff, shared values and skills. The hard elements of McKinleys model are feasible and easy to identify. They can be found in strategy statements, corporate plans, organization chart and other documents. The four soft Ss however, are hardly feasible. They different to describe, capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization therefore it is much more difficult to plan or to influence the characteristics of the soft elements

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Application of 7s model

STRUCTURE

STRATEGY SHARED VALUES

SYSTEM

SKILL STAFF

STYLE

FRAMEWORK OF MCKINLEYS 7-S MODELS

According to this model there are seven basic dimensions which represent the core of managerial activities. These are the levers, which the executives use. The originators of the model have coined the managerial variables with words beginning with the latter S so as to increase the communication power of model. The seven S are Structure: the way the organizations unites relate to each other centralized, functional division (top-down) decentralized matrix, network holding, etc.

System: the procedure, processes, and routines that characterize how to important work is to be done are financially system, hiring, promotion and performance appraisal system, and information system.

Strategy: plans for the allocation of firms scarce resources, over time to reach identified goals, environment, competitions, customers. Style: cultural style of the organization and how key managers behave in achieving the organizations goals.

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Staff: numbers and types of personnel within the organization. Promoters of the company and the qualities of the key staff. Shared value: the introducing centre of McKinleys model is shared values. What does the organization stands for and what it believes in central beliefs and attitudes. Skill: distinctive capabilities of personal or of the organization as a whole.

STRUCTURE
The formal arrangement of jobs within an organization is called organizational structure. It prescribes the formal relationships among various positions and organizational members to communicate with other members ,what roles members need to perform, who reports to whom and what rules and procedures exist to guide the various activities performed by members are all part of the organization structure. Structure provides clearly marked career paths for its members. The organizations size affects its structure. The design of organizational structure is a critical task of the top management of organization. Organizational structure refers to the organizational and relationship. It prescribes the formal relationship among various position and activities. In VSL structure is very flexible enough to maintain the external environment as well as internal also, the VSL is having lengthy structure of the organization, this helps the organization to function to function smoothly. Here executive director (ED) holds the authority of managing the entire internal and external environment activities. In this structure each functional departments comes under the authority of ED and each functional department is having departmental heads which means GM of each department, which the work of each department is going through this GMs these persons are working as connecting line of the industry, which helps to planning, decision making, control and communication. The following organization chart shows the working process of the VSL Steels ltd.

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ORGANISATION CHART

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The structure of the VSL, have a broad border work is very potential dimension of organization of development and relationship between owners and employees with realistic mutual understanding in the particular structure for the development of company and earning profit The industry is having significant foremost organization structure will be useful share holders, management and all other people who are dealing with the company.

FINANCE DEPARTMENT
IMPORTANCE OF FINANCE
Finance system ensures adequate organizational financing at a low cost so as to maximize return. It consist of major functions such as getting credit to customers, collection process, cash management, financing capital and so on. The function of

finance department also includes the preparation of budget report, Financial management is that managerial activity which is concerned with the planning and controlling of the firm financial resources Finance means acquisition of funds and proper utilization and allocation of funds in proper way. Finance plays a vital role in the development of any business. Thus development of any business majority depends on effective finance management. In olden days the role of financial manager was only limited to raising funds and maintaining the books of accounts, but now the trend is changing. The financial manager has wide scope in present scenario and he plays a vital role in decision- making. Costing budgeting etc. Finance management is one of the most important functions in the organization. It is the lifeblood of the company. Financial management involves the preparation of budget, which will be useful for the future decision, and it will give information about the companys financial position to the customer, creditors and government. Financial department provides fiscal service and controls financial transaction of the organization. Core function includes preparing financial portion of the deportment budget. Paying department obligation, preparing employee payroll.

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The purpose of the deportment in the company operation is to efficiently manage the financial resources of the company through data analysis, forecasting, accounting, receipting and reimbursement.

STRUCTURE OF FINANCE DEPARTMENT

Finance controller

SR. Accountant officer 2

Senior Accountant

Assistant accountant
Source: VSL Steel Ltd Hiriyur

Assistant accountant

The finance department is headed by the financial controller he assigns the functions to assistant senior account officer. ASAO to senior finance manager. Senior finance manager had to be appointed manager to different deportment. Pay and establishment section shows the issuing salary pattern of employees. But VSL follows payment system through bank.

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FINANCIAL MANAGEMENT INVOLVES 3 MAJOR DECISIONS

Investment Decision
It is most important than the other two decisions. It begins with a determination of the total amount of assets needed to be held by the firm. In other words, investment decision relates to the selection of assets, on which a firm will invest funds. The required assets fall into two groups: 1) Long-term Assets (fixed assets: Plant and Machinery, Land and Building, etc), which involve huge investment and yield a return over a period of time in future. Investment in long-term assets is popularly known as Capital Budgeting. It may be defined as the firms decision to invest its current funds most efficiently in fixed assets with an expected flow of benefits over a series of years. 1) Short-term Assets (Current assets: raw materials, work-in-process, finished goods, debtors, cash, etc.,) that can be converted into cash within a financial year without diminution in value. Investment in current assets is popularly termed as Working Capital Management. It relates to the management of current assets. It is important decision of a firm, as short survival is the prerequisite for long-term success

Dividend Decision

Dividend is a part of profits, which are available for distribution to equity shareholders. Payment of dividends should be analyzed in relation to the financial decision of a firm. There are two options available in dealing with net profits of a firm, viz., distribution of profits as dividends to the ordinary shareholders where there is no need of retention of earnings or they can be retained in the firm itself if they require for financing of any business activity. But distribution of dividends or retaining should be determined in terms of its impact on the shareholders wealth. Financial manager should determine optimum dividend policy, which maximizes market value of the share there by market value of the firm. Considering the factors to be considered while determining dividends is another aspect of dividend policy.

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 Financing Decision
After estimation of the amount required and the selection of assets required to be purchased then the next financing decision comes into the picture. Here the financial manager is concerned with makeup of the right hand side of balance sheet. It is related to the financing mix or capital structure or leverage. here the financial manager has to determine the proportion of debt and equity in capital structure. It should be optimum finance mix, which maximizes shareholders wealth. A proper balance will have to be struck between risk and return. Debt involves fixed cost (interest), which may help in increasing the return on equity but also increases risk. Rising of funds by issue of equity shares is one permanent source, but the shareholders will expect higher rates of earnings. The two aspects of capital structure are: one capital structure theories and second determination of optimum capital structure. FUNCTIONS OF ACCOUNTING SECTION OF FINANCE DEPARTMENT The bills payable, bills receivable, payroll management, Bills payable: normally the credit period is 45 days from the date of supply of materials, credit depends on the purchase order after processing the purchase order bills will be paid within due date Bills receivable: receivable are current assets as a result of sale of goods on credit in the ordinary course of business. Payroll management: the salaries and wages will be distributed to the employee on before the 10th day of the month following. Payment is distributed through the bank.

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ACCOUNTS DEPARTMENT
GOALS
Profit maximization. Wealth maximization. This department plays a very important role in dealing with money related matters. The main objectives of this department to see the utilization of resources like men, machine and materials.

FUNCTIONS
It is the custodian of resources. It contains treasury functions which deals with money flow, it can either be in flow or outflow. Outflow means of may be either coming from loans or capital or out flow or earning profit. Outflow may be either in the form of expense or purchase of assets. Book keeping: All accounts like cash, Bank, Sales regarding assets loans will be maintained by finance department. This book keeping consists of statutory. These statutory are governed by: 1) Company law 3)Income Tax AUDIT: - It Consists Of 1. Internal Audit, which is for only department. 2. External Audit, which include outside experts. Management information system Co-ordination 2) Sales Tax law 4) Customers Act

The finance department the closing of account is done on yearly basis. There will be yearly date i.e. on April-March, which is considered as financial year. The main responsibility of accounts department is to arrange the funds time to time. At the end of accounting period they prepare profit and loss account, balance sheet. Then the final account is submitted to share holders. After that the auditors do the final auditingThe VSLs finance management has dividend into different sections. The whole management is holding by General Manager of the department and finance controller, Senior Accountant, Assistant accountant, are working under the (G.M) General Manager each section of the deportment is having manager to undergo their functioning process easily.

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MARKETING DEPARTMENT
IMPORTANCE OF MARKETING
Marketing is a social process which individual and groups obtain what they want and what through creating, offering-and freely exchanging products and services of value with others. The essence of marketing is exchange or a transaction intended to satisfy human needs and wants through an exchange process. A demand is a want for which the consumer is prepared to pay a price. A want is anything or a service, the consumers desires or seeks. Wants becomes demand when backed by purchasing power. A need is anything the consumer fells to keep himself alive and healthy. A transaction consists of value between two parties. A transaction differs from a transfer. A transfer may receive nothing in return. The aim of making is to make sales and order to earn reasonable portable profit for the producers.

OBJECTIVES OF MARKETING
Barker and Anshen say the end of all marketing activities is the satisfaction of human wants through the satisfaction of human wants, profits are rewarded to the business and addition benefit is the inducement of marketing. Now the time has changed and the objective of marketing is more than security profit. The following are the main objectives of modern marketing activities.

MARKETING MIX
Marketing mix is a term used to describe the combination of the four inputs which constitute the core of a companys marketing system. They are 1. Product 2. Price 3. Place 4. Promotion

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The products of VSL steels have good acceptance in domestic market The main functions of marketing deportment are: Maximization of sales Customer satisfaction. Fixing fair prices of products. Distribution 100% resources and raw materials for producing products. Maintaining proper distribution channel.

STRUCTURE OF MARKETING DEPARTMENT

GM-Marketing

Asst. Mgr.

Dispatch section

Officer

Officer

Weigh Bridge Operations

Yard Asst. /Helper

SOURCE: VSL STEEL LTD HIRIYUR The Marketing department is headed by the GM means General Manager; here he is assisted by all the department function in the marketing. He is assisted by the dispatch Manager in Marketing. Here they have special policies, quality assurance and quality objective. VSLs marketing has different marketing network across the country.

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The respective heads in the marketing department maintain the good customer relationship by having good competitive price to the product and if any fault in product the marketing deportment will contact the production dept to improve in quality of the product. This is done by having good distribution channel in the system. This will lead to achieve all the goals of marketing deportment.

MARKETING NETWORK OF VSL

Belgaum

Hydera bad Coimbat ore

Baroda

Ludhian a

Batala

MARKETING NETWORK OF VSL

Chenna i Kolha pur

Rajkot

Ahmada bad

Delhi

SOURCE: VSL STEEL LTD HIRIYUR

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RESPONSIBILITIES OF GM REGARDING MARKETING DEPORTMENT Follow with potential customers to obtain purchase order. Handling customer complaints. Communicating with customers

MAJOR CUSTOMER OF VSL

Defense unit Railways Engineering industries Tata Automobiles /foreign industries BHEL SAIL unites

MARKETING STRATEGIES ADOPTED TO ATTRACT AND RETAIN CUSTOMER

Buyer market Quick delivery better quality

MARKETING SEGMANTATION
Marketing segmentation means dividing the market into different segmentation or sector in VSL the market segmentation is one of the bases of customer wise and product wise.

BY CUSTOMER -WISE
defense sectors railway sectors auto and forging sectors engineering sectors trade sectors

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BY PRODUCT -WISE 1. Quantity discount 2. Payment terms by credit 3. Quick delivery The VSL marketing net work spread across the company, whole marketing deportment is headed by General Manager of the deportment. The General Manager assigns the functions to his subordinates to market their products. The VSL has targeted some major customers like, railways, engineering industries, Automobiles /foreign industries, Tata and BHEL others SAIL unites etc. It has strategies to attract its customers through its products, and has segmented its market as customer wise and product wise. VSL does direct marketing; it sells goods directly to consumers.

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HUMAN RESOURCE DEPARTMENT Structure of Human Resource Department

GM (HR & A)

Sr. Mgr. (HR)

Sr. Mgr. (Admin)

Jr. Mgr. Office Assistant

Receptionist

Canteen Supervisor

Jr. Assistant

Security Supervisor

Transport Assistant

Source: VSL steel ltd hiriyur

The department is functioning through the above show flow chart of the department as head of G.M they will assign the function of deputy General Manager or senior Manager. Of the department, he assigns the other workers or under the managers doing the work of administrative Personnel Department is a part of the management function. Primarily these departments will deal with human relationship within & outside the organization and department will maintain feeling in the organization and make the employee/ individual to contribute to the effective working of the undertaking. The Personnel Department will co-ordinate with all the departments to maintain a harmonious industrial relationship in the industry.

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The Personnel Department in fact more than equipment, machinery, building, furniture and fixtures and organization identity and purpose which mainly depended on the human resource which it can procure, maintain develop and utilize to accomplish the organizations goal. The management of human resource is more likely to known as Personnel Management. The role of the personnel management is an organization is a more valuable to achieve the organizations goals. The Personal Department will conduct the advanced technical training to develop the employees skills at the works.

FUNCTIONS
1. 2. 3. 4. 5. 6. 7. 8. 9. Provide growth-engineering function. Manpower planning. Recruitment and Selection. Introduction of the newly recruited employee. Training and development of the employee. Motivation/Counseling. Grievance handling. In time communication to the employee. Appraisals.

10. Promotion. 11. Discipline & disciplinary actions. 12. Health, safety, welfare of the employee.

SELECTION OR INTERVIEW
The HR department in consultation with HOD of concerned will scrutinize applications received in response to advertisement and lists of candidate to be called for interview will be drawn up. GM/HR OR J.D the list of candidates to be interviewed. The number of candidates to be called for interview should not normally exceed 5 times the number of vacancies to be filled up. The selection committee as per the rating sheet will assess candidates appearing for interview.

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SOURCES OF SELECTION
Employment exchanges Open advertisements Ex employees Employment and known services trainees

DUTIES OF PERSONAL OFFICERS

1. To assist superior to formulate the organization chart and manpower planning. 2. To assist seniors in recruitment, selection, induction of the employee. 3. Record keeping and maintain the personnel files. 4. To co-ordinate with various departments and find out the training requirement. 5. Maintaining of wage and salary administration. 6. Assist seniors to conduct the training programs. 7. To assist seniors in evaluation and appraisal. 8. Preparation of periodical evaluation sheets. 9. To assist seniors to conduct motivation/counseling/grievance handling. 10. To take part in the statutory welfare activities.

TIME OFFICE
It is a branch of Personnel Department. Time office is a key to Personnel Office. The primary function of time office is to maintain the attendance register of the employees and leave register and wage and salary exemption of all employees. Every employee of the company will be provided with an identity card, Production of which is mandatory to gain, attendance into the company premises during the assigned shift. Every employee shall on demand by authorized persons, shall produce the card. Failing to produce the card will debar the employee from work for the day and also make him liable for disciplinary action. The Identity Card cannot be transferred and in the event of loss of identity card, the employee shall immediately report the loss to security and personnel department. The employees shall bear the entire cost of reassurance, discharge retirement etc., the employee shall return the badge to the issuing authority.

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FUNCTIONS OF THE TIME OFFICE: 1) Time management: It is one of the major functions of time-office, issuing punch card, fixing the shift, shift time, engaging employees in shift. This all come under time management. 2) Leave management: It is part of time office. Maintaining proper leave system, providing leaves to the employees different types of leaves will be provided. Those are CL, EL. 3) Attendance management: It is also one of the major function. Here maintaining attendance register, checking the out punch and in punch and absent of employees. 4) Pay roll management: After the muster roll, pay roll comes. In the pay role determine and fix the wage for employees on the basis of attendance register. In VSL pay role headed by human resource department, here determine the salary, allowances, incentives, welfare measures, pay advance, off day, absent days, saving schemes. These all factors will be determined in the section. After this they will be paid salary to all employees before 7th or 10th of the every month. Employees strength: In VSL categorized the workers in two groups. Those are; 1) Permanent employees 2) Contract labor. 1) Permanent employees: The Company has permanent employees strength of around 380. These employees engaged by the management. 2) Contract labor (workers): The Company also has contract workers strength of around 300. These workers are engaged by licensed contractors.

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SHIFT SCHEDULE The company howls 3 shifts in a day. Each shift carries 8 hours like, Shifts A B C Working hours 6A.M. to 2.00P.M. 2.00P.M. to 10.00P.M. 10.00P.M. to 6.00A.M.

General 9.00A.M. to 5.00P.M.

Source: VSL Steel Ltd Hiriyur The wage determination process: In the VSL has good and systematic process for the determination of wages. The wage is determined following measures like, 1) Job performance, 2) Experience, 3) Individual performance Time of payment of wage: In VSL has systematic time of payment of wage. In VSL the wage is given before the 7th and 10th of the every month to all employees.

NOTIFICATION OF VACANCIES Management will require the employment exchange to sponsor the suitable qualified candidates. If the local or central employment exchange as the case may be does not sponsor suitable candidates. The posts will be advertised in the newspaper. INTERNAL

Presently VSL follow internal source to market right member at right place giving promotion to existing worker and giving grade from A to Z likewise EXTERNAL

The advertisement will be given in the newspaper for the required number of vacancies in the organization.

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PAYMENT OF WAGES
All workers shall be paid on or before the end of the 7th working day after the last date of the wages period in respect of which the wages are payable Any wages Due to the worker which a worker has not to required on the usually pay day shall be treated as unclaimed wages. OR All wages / salaries due to the workers will be paid on or before 7th day of the month following. The date of payment shall be notified on the company notices board.

TRAINING AND DEVELOPMENT Employees directly corridor the company service is required to undergo initial familiarization training which in some cases extend to a period of one year.

PERFORMANCE APPRAISAL Performance appraisal is an important management function and the report is a valuable document which has direct bearing on the future career of any officer /employee. It provides an opportunity to record achievements and also reveal drawbacks on the part of the officer / employee calling for corrective action. It creates confidence and is sources of awareness amongst the officer /employee that their future prospects depend upon their service record. TERMINATION OF EMPLOYMENT BY THE COMPANY The service of permanent workmen may be terminated by either party giving to the other one months notices in writing or paying equivalent wages in lieu of the notice. The service of workman can be terminated on the ground of services no longer required in the interest of the company without assigning any reasons. A workman whose services are terminated under this clause, shall be deemed to have been retrenched and be paid compensation at the rate of half months wages for every completed year of the services or part therefore not being less than six months as per the Industrial Dispute Act 1947 except where there is conclusive evidence to substantiate anti national or subversive activities by the workman.

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The employment of permanent workers may be terminated by given three months notices or three months pay in lies of notice without assigns any reasons whatsoever. The service of a temporary worker may be terminated without given any notice without any reasons whatsoever. The services of any probationer is liable to be terminated at the end of the

probationary period or during the period of probation without given any notice . PUBLICATION OF WORKING TIME The periods and hour of work for all class of workers in each shift shall be exhibited in English and Kannada on notes board as per the factory act.

ATTENDANCE
1. Every workers shall commence work at assigned place and at the time fixed for commencement of work in accordance with the notified working hours 2. The starting and closing of work period, the starting and closing interval period shall be notified time to time and singled and sustainable drives. 3. If any worker is found to have left the assigned place of work before the start of interval period or before the close of shift such worker should be demand to have competed on act of misconduct and shall be liable those standing orders. 4. Every worker shall be allowed minute grace time at the commitment of the shift three times in month but no grace will be allowed at the end of the internal time. Worker coming late will lose wages as per the provision of the payment of wages act 1936. 5. If worker is late to work either at the of the shift working hours or after lunch internal for more than three times a month to successive months or for more than five time any month. The shall be declared as habitual attainder and shall be liable for disciplinary action as provides for under the standing orders.

TRANSFER
The management shall the right to transfer a worker from one department to another in the same factory as the company may divides at its discretion. A worker is also liable to be transfer to any of the companys branches or any of its. Units whenever situated within Karnataka state the company shall also have the right to transfer a

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worker to any new factory establishment or office may be started by the company at any time in future. Provide that if any work man transferred to any of the companys branches or any of units within a reduce of 10 kilo meters from this units he shall be paid 25% of gross wages per month as extra wages plus a lump sum of RS 5000 a onetime payment. Provide that if any work man transferred to any of the companys branches any of units with a reduce of 10 kilometers, and more from this units and within the same direct he shall be paid 50 % of gross wages per month as extra wages plus a lump sum of RS 10000 a onetime payment. Provide that if any work man transferred to any of the companys branches, or any of its out said the direct and within the state of Karnataka he shall be paid 75% of gross wages per month as extra wages plus lump sum of RS 25000 onetime payment. When a worker is called upon to do any other kinds of work other than his usually job, he shall not refers to do such a job on ground of dignity all workers of whatever nature done in the factory premises shall be considered dignified consequents to such transfer the wages of a worker and other condition of services shall not adversity affected by such transfer, Provides that any other kind of work shall not be inferior to that of his present job, will the concurrence of the work man,

WELFARE MEASURES The VSL provide welfare measures like, medical, canteen, uniforms, goggles, hand gloves, shoes, aprons, rain coats. Nose filter.

GOALS OF HRD:
1. Development of individual capacity 2. Development of competitive in relation job being performed 3. Development of corporate approach 4. Development of interpersonal relationship 5. Development of overall organization culture

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Organization is a group of the people and the people have high potential resources. To optimize these resources and make organization more effective it is necessary to have HRD system.

ROLE OF HRD:
1) Human resources planning 2) Human resources accounting 3) Human resources maintenance 4) Human resources training and development

5) Human resources allocation ACTIVITIES OF HRD:

Training needs identification 1) Training need assessment 2) Training need justification 3) Selection of learning process 4) Planning, designing conducting the training process 5) Budgeting and controlling

TRAINING OBJECTIVES: 1. To help the trainee 2. To improve knowledge, skill, attitude and performance 3. To development to increase productivity 4. To prepare for greater responsibility 5. To improve interpersonal relationship The HR Department is a part of the management function. Primarily these departments will deal with human relationship within & outside the organization. This department preparing the attendance and given the salary of the employees, it is a one of the main department of the organization every work is process in HR department.

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RAW MATERIAL HANDLING DEPARTMENT

Raw material department mainly deal with the receipt, issue and storage of the materials from the supplier and then makes a necessary inspection, if they are accounting to the order then they issued to concerned department. Normally the STRUCTURE OF RAW MATERIAL HANDLING DEPARTMENT

Asst. Mgr.

Engineer

Supervisor

Weigh bridge operators

Truck Tippler Operators

Sampling Operators

Day Bin Operators

Source: VSL steel ltd hiriyur The raw material department is headed by the Assistant Manager he is assigned by the engineer and supervisor all the department function in the raw material He is assisted by the weigh bridge and purchase the raw material high transportation cost.

RAW MATERIALS
The major raw materials used in the Blast Furnace operation are Iron Ore, Coke, Manganese Ore, Lime Stone, Quartz and Dolomite. The company meets its entire annual requirement of Iron ore for the plant from its OWN CAPTIVE MINES located at Sandur, Bellary having rich high grade Iron ore deposits. Our expertise in Iron ore export enables us to negotiate the Import of best LAM COKE from China.

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The raw materials required for the days usage are transferred into the respective day bunkers by use of a conveyor system. The materials from the day bunkers are screened and weighed to the required size and quantity in batches. The undersize Materials in the screening process are transferred into the fines bunkers for storage. The weighed batches are discharged into a conveyor in a pre-determined sequence and are transported to the blast furnace top for charging into the blast furnace

A) Iron Ore: Total iron ore requirement for manufacture of pig iron is procured from captive mines located at Sandur, Bellary District. Annual requirement is 3, 00,000 MT. B) LAM Coke: Is being imported from China and also we are Procuring from domestic market and required is 1, 30,000MT per annum. C) Lime Stone: Lime stone is procured from local area, north Karnataka and South West parts of Andra Pradesh. Annual requirement is 20,000 MT. D) Dolomite: Dolomite is procured from local area, North Karnataka and South West parts of Andra Pradesh. Annual requirement is 17,000 MT. E) Quartz: Quartz is procured from local area. Annual requirement is 5,000 MT. F) Manganese: Manganese is procured from local area and Bellary - Hospet sector. Annual Requirement is 5,000 MT. The principle involved in Blast Furnace iron making is the thermo-chemical reduction of iron oxide ore by Coke into liquid iron at around 1500 The unwanted materials are removed in the form of liquid slag by addition of suitable fluxes. Raw materials are charged from blast furnace top and hot air is sent up from the bottom resulting in these thermo-chemical reactions.

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SECURITY DEPARTMENT
Security Department is the index of the company and an independent department of the organization. The primary function of this department is to safeguard the Personnel materials and property. I also collect the information regarding the employees and surroundings. Security Department also takes care of fire incidence. They also look transport for Personnel. This department consists of 26 guards totally. These guards are provided by the Agency. Security department is one of the important departments in every organization. The security department performs some of the following functions. Before making dispatch of the materials the security department makes proper inspection of materials along with the necessary documents. At the time of the receiving the supplies also make proper checking of the goods actual quantity with the documents. The main function is avoiding the theft, pilferage in the company.

Qualities for Security Staff

The Security Department expects certain qualities from the guards while appointing for the post. They are as follows He should be physically fit. He should have security background. He should be intelligent and initiative. The entrance of the factory consists of 2 main gates. They are 1. Gate No.1:- It allows only visitors and punch gates 2. Gate No.2:- It allows materials going out after dispatched and employees.

Duties of Guards of Main Gate They should not allow any vehicle and man without receiving the gate pass. They should leave only the visitors and incoming materials from Gate No.1 with pass. They should leave only those trucks taking out materials after dispatched and not any other vehicles.

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 They should check the vehicle before departing They should be thumb of all employee in gate and leave pass is also there

The security department maintains certain records and reports, such as

Material gate entry registers. Retainable and Non-retainable register. Employee entry registers. Visitors pass register. Materials dispatch register. Visitors pass. Vehicle entries pass. Security law book. Bus arriving register. Personnel movement registers. Employee leaves register.

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SAFETY DEPARTMENT
VSL Steels recognizes the importance of safety and health of its employees. We are committed to follow safety procedures to reduce all identified operational hazards, risks to employees, contractors and visitors. Training is provided for all employees to work safely to prevent injury to themselves and others, and avoid damage to property.

A well equipped First Aid and Occupational Health Centre is operational round the clock. It is supervised by qualified Employees throughout the world lose their fingers, eyes, limbs, even their lives, every day. Accident cost the organization dearly.

OBJECTIVES OF SAFETY
Accident prevention. To provide safe, comfortable and good working condition To achieve reduction in accident, occupational diseases and loss of property. To improve productivity Improve morale and communication. Improve corporate image

SAFETY POLICY VSL steel plant, paramenahalli in hiriyur is committed to The safety of its employee and the people associated with it including those living in the neighborhood of its plant. Pursue the safety efforts in a sustained and consistent way by establishing safety performance and providing the resources to make safety program work. TEN SAFETY RULES Firm belief that all accident is preventable. All employees are responsible. Correct or report unsafe conditions Use adjust and repair equipment only authorized Follow instruction dont take chances if you dont now ask

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Help to keep everything clean Use there right tools and equipments for the job use them safety Use prescribed personal protective No horseplay avid distracting others Report injuries get first aid and protection

SAFETY EQUIPMENT PROVIDED TO EMPLOYEES IN VSL Hard helmet. Skullcap Safety glasses (plane and welding) Welding mask Hand mask Safety shops Legs spats Ear plugs and ear muffs Safety aprons

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MANAGEMENT INFORMATION SYSTEM DEPARTMENT

The main function of this department is
Computerization. Networking. Setting of Internet and info net.

TYPES OF MARKETING INFORMATION DEPARTMENT a) Order Acceptance System In this system, the orders to produce goods are accepted from the customers. This system has to take into account how much goods to be Produced, when to dispatch, where to dispatch where to deliver the goods and when to deliver the goods etc. b) Production Planning And Control Order acceptance system and introduction planning and control are lined together. Marketing people should know the pending orders. They should know when the goods are to be produced. If good are produced the quality is not cleared. If the quality is cleared the goods are not dispatched. These are the reasons for the orders remaining pending. They should also know who the customers and where the goods to be dispatched. Then they will give the daily production reports. These reports will go to excise department for knowing the stock availability. c) Quality Assurance System In this system, until the quality is cleared the dispatch advice cant be made as per the O.A. then the dispatch channel is prepared. Truck loading sheet is important for quality people to check whether the right product is loaded or not in the truck after that invoicing is done. a. Financial Accounting System c. Stores And Purchase System b. Costing System d. Excise System

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STRUCTURE OF BLAST FURNACE OPERATIONS DEPARTMENT

The function of BF operation department is to look after the process of production of pig iron and other by products. VSL Steels Limited has a blast furnace of 262 m3 capacity of MECON technology with the capacity of producing 1, 44,000 tonnes of Pig Iron per annum. Commercial production of Pig Iron was started from January 2007.
JD

GM

Dy. Mgr.

Dy. Mgr.

Dy. Mgr.

Dy. Mgr.

Engineer

Engineer

Engineer Technician n
Engineer

Engineer

Technician
Engineer

Technician n
Engineer

Technician n
Engineer

Operator
Technician

Operator
Technician

Operator
Technician

Operator
Technician

Source: VSL steel ltd hiriyur

The Blast Furnace Operations Department headed by the joint director assigning the function of GM. General Manager hear assigning the work of engineer and technician finished the work in technical problems in the organization.

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Blast Furnace
The blast furnace top charging system is equipped with a double bell system to maintain the blast furnace top pressure. The raw materials are evenly distributed by using a rotary chute. The charging is carried out in batches as per the pre-determined sequence. The stock level indicator measures the level of raw materials inside the furnace and gives feedback for charging inputs. The entire charging system from screening to charging is fully automated using Siemens Automation Systems.

STRATEGY
The strategies of VSL with reference to functional areas are very clear. which are given below. Strategies are the actions a company plans in response to or anticipation of changes in its external environment. It includes purposes, mission, objectives, goals, and major action plans and policies. At VSL steels limited, the prices for its products are fixed on the basis of raw materials cost, market condition, and cost production. VSL competes on high quality, affordable price and timely delivery of its production to customers and marketing strategy adopted by VSL is effective and maintain continuous improvement in quality to achieve customer satisfaction. VSL adopts certain strategies to develop technical personnel at all levels through appropriate human resources and development programming the organization with a view to further improve the skill and performance consistent with the high technology operations. Safety and welfare strategies are adopted by the organization to strengthen the environment. Health and safety measures.

Pricing strategy At VSL Steels Limited, the prices for its products are fixed on the basis of raw material cost, market condition, and cost of production. Waste management strategy

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Sewage Treatment Plant of 32KLD has been constructed. The plant is designed on zero discharge principle. The processed water is re-circulated and make-up water is added to take care of the process losses. The hot gas generated in the blast furnace is cleaned to reduce the dust content to less than 5mg/NM3. The cleaned gas is used in generation of Power and Stove heating. Surplus gas is flared through a flare stack Strategies are plans an organization formulates to reach identified goals, and a set of decision and action aimed at gaining a sustainable advantages over the competition. The VSL has made future strategy to survive in the iron and steel market. Every industry management always thinks about reputation and profit oriented, like that VSL also having its own strategy to reach its goal or objectives in the steel sectors

SYSTEM
System reface to all the rules, regulation, daily activities and procedures both formal and informal that compliments the organization structure. It includes all the processes and information flow the link the organization together, consisting of training and development system, planning and budgeting systems, performance management systems, etc Management information system at VSL steels limited has a well designed information network. They have fully equipped technical information department, which is called as information system group. The most essential function of this department is to make the strategic and operational level information at all time. Production planning and control system : In VSL steel plant, there is a PPCS (production planning control system) to prepare the annual performance plan, which control the production activities this department, every year publishes one books in the month of April, which is having the title as annual performance plan in the this book production plan, the budgeting financial expenses, forecasting sales and the actual statistical datas of previous year are mentioned. Productions are planned according to the capacity of each deportment. Capital budgeting system : In VSL steels limited is a separate system for the capital budgeting. For cost accounting, this comes under deputy general manager (FC)In VSL every sales price is different; it varies

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from customer to customer. In negotiating the price for each customer, the cost according deportment fixe the price and sends it to the executive director officer for approval. This system will prepare the budgets it the month of December. Management Information System Management Information System at VSL Steels Limited has a well designed information network. They have fully equipped technical information department, which is called as information system group. The most essential function of this department is to make the strategic and operational level information at all times. Inventory Control System: ABC analysis will be done for stock control. FIFO method is followed for receiving and issuing materials. Computerized accounting system is used for maintaining store activities Remuneration System: Company fixes salary to employees based on their qualification and experience. Permanent employees are paid salaries. Group incentives are paid to direct workers if they achieve monthly production targets. Daily wages are paid to contract employees through contractors. Performance Appraisal System Confidential report is prepared by heads of various departments for systematic judgment of the subordinate by authority to assess the standard of work & overall performance. System define the flow of activates involved in the daily operation of business, its core processes and its support systems. So the VSL has maintained the flow of activities involve in its daily function of business. The industry has maintained inventory control system and production planning control system in order to prepare annual production, annual performance of products and to identify which items should receive the most effort on controlling. The firm should be selective in its approach to control investment in various types of inventories.

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SKILLS
Skills refer to the actual skills and competencies of the employees working for the company. The term skill includes those characteristics which are developed over a period of time. VSL Steels Limited is good at technical and human skills. There are around 130 skilled workers followed by 30 semi-skilled and 30 unskilled workers out of 300 permanent employees. On the Job Training is provided for fresher. Training programs are conducted regularly for all the employees to enhance their skills. The industry is having fully skilled persons or employees. The industry providing training to newly appointed employees to improve their skills regarding the working condition in the industry, and also to develop their mental ability. The industry is having tow type of workers one is semi skilled workers and another one is unskilled workers.

STYLE
Style refers to the cultural style of the organization, how key mangers behave in achieving the organizations goals, how managers collectively spend their time attention, and attention, and how they use symbolic behavior. How management acts is more important that what management says. The management of VSL is completely employee oriented. They receive the feedback from the workers and decide on the change in the strategies. As VSL unit of The VSL handover the authority and responsibility to the workers from that the workers can execute his/her ability efficiency and capacity of manage the industry. Through this the organization can get the help from workers to take a proper decision and planning on industry development and forecast future strategies

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STAFF
The term Staff refers to the employees and their general capabilities. Staffing is the process of acquiring human resources for the organization and assuring that they have potential to contribute to the achievement of the organizations goals. In VSL Steels Limited, there are nearly 300 workers comprising of permanent employees, trainees and probationers. There are 500 plus contract workers. The company's Manpower is its real strength. VSL Steels is an equal opportunity employer. There are around 130 skilled workers followed by 30 semi-skilled and 30 unskilled workers out of 300 permanent workers. Employees are the assets of the industry therefore human force is very significant to industry. Today VSL is having 600 employees in the industry; in that most of the employees age is around 50-52 years. The duties and responsibilities of staff differ from department to department like production departments To other departments. Before retiring the employees will get promotion in their grades, but the industry is frustrating that the skilled employees are rating in the number two to three for every month. Three for the industry is lacking skilled people

SHARED VALUES
Shared values are the core values of the company that are evidenced in the corporate culture and the general work ethic. These are also called super ordinate goals. Placing shared values in the middle of the model emphasizes that these values are central to the development of all the other critical elements. The original vision of the company was formed from the values of the creators. As the values change, so do all the other elements.

Customer Satisfaction: Both the management and workers are committed to understand the present and the changing needs of the customers and fulfilling them for achieving total customer satisfaction.

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Environment Protection: Management and workers are committed to protect the environment. To control the dust, all the major roads within the plant are asphalted. The approach road from Highway to the plant is also asphalted. Water tanker, water sprinklers and rain guns have been installed to wet roads and stock yards for dust suppression.

Safety They are committed to follow safety procedures to reduce all identified operational hazards, risks to employees, contractors and visitors. Training is provided for all employees to work safely to prevent injury to themselves and others, and avoid damage to property. VSL Steels Limited strives to be a good corporate citizen. VSL Steels as a corporate entity believes in inclusive growth of all stakeholders associated with the company. They have taken a pledge to improve the living standards of people in the area of their operations. The VSL vision is to being world class innovative and competitive through its values and products, for that the VSL has implemented some kind of core values to meet its ultimate objectives or goals.

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CORPORATE SOCIAL RESPONSIBILITY

Both the management and the workers are committed to help the society by serving surrounding villages as below:

School uniforms distributed to all students of Government schools of Paramenahalli, Doddaghatta, Uduvalli and Kathrikenahalli villages.

Dining Hall built for Government schools of Paramenahalli villages and Mokshagundam School at Hiriyur.

Beautification and maintenance of TB Circle at Hiriyur. Donation for Brahmha Ratha to Kanive Maramma Temple at Vanivilasapura. Play ground for Government school of Paramenahalli and Kathrikenahalli village. Free Medical Check-up Camp held at Navodaya Viddyalaya, for the villages of Doddagatta, Uduvalli, Kathrikenahalli and Paramenahalli. VSL has sponsored the treatment and also conducted operations warranted on a case to case basis.

Donation of Wheel Chairs to physically handicapped persons of Uduvalli, Paramenahalli, Doddaghatta and Kathrikenahalli Villages.

Mass Marriage ceremony was sponsored and arranged for over hundred couples for the last four years.

Donated rupees 10 lakh to Bangalore Diabetes Hospital, Bangalore. Contributed rupees 11.4 lakh for North Karnataka Flood Relief Fund. VSL steels as a corporate entity believes in inclusive growth of all stakeholders associated with the company. They have taken a pledge to improve the living standard of people in the area of their operation.

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CHAPTER 5
SWOT ANALYSIS STRENGTHS
1. Latest technology of production. 2. Captive power plant of 4 MW.

3. Experienced management and technical team. 4. Product quality is the strength of the company. 5. VSL has good reputation in Steel market this is the result of long experience. 6. Good work culture. 7. Customer satisfaction. 8. Economical and skilled work force. 9. Easy access to the major ports of Mangalore. 10. Good support from bankers 11. Growing market demand

WEAKNESSES
1. VSL is far away from the main market. 2. Freight and Transportation costs are high as the Port and Railway Station are very far from the Plant. 3. Market realization is weak. 4. Transportation costs are high due to non-availability of trucks and other means of transportation. 5. Financial crunch is another weakness of VSL steels ltd. 6. Problems in efficient warehousing and out bound transaction. 7. Purchasing iron ore and coke for high price.

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OPPORTUNITIES
1. It lies in the vicinity of large potential and unexplored market of southern India. 2. More and more infrastructural projects from State and Central Govt. are another opportunity which increases demand for its production. 3. Growing market. 4. Support from the state government. 5. Export potential is one of the greatest opportunities. 6. Modernization of the plant and machine.

THREATS
1. Tough Competition with SAIL, TISCO, MITTAL, JINDAL, KIRLOSKAR and other big players. 2. Price war may result due to close competition and price being the main constraint in steel marketing. 3. Dumping of metal from countries like Korea is another major threat. 4. Threats from materials like aluminum, plastic and cement. 5. Availability of Chinese steel at cheaper rate in the domestic market. 6. Customer choosing to go for cheaper products. 7. Need for frequent renovation of plant and machinery. 8. Growing competitors of domestic market.

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FINDINGS
VSL Steels Limited is a manufacturer of high quality Pig Iron and is a flag ship company The VS Lad group is one of the oldest and largest suppliers of iron ore from the South Indian State of Karnataka The Iron and steel are two of the most important metals. Steel is an alloy of iron and other material. VSL steels are one of the leading producer and exporters of iron ore, mining around three million tons per annum. The plant has an annual production capacity of 1, 44,000 MT of Pig Iron, which will be enhanced to 2, 16,000 MT per annum by commission of new Sinter Plant. The VSL adopted Captive power plant of 4 MW. Transportation costs are high due to non-availability of trucks and other means of transportation. Purchasing iron ore and coke for high price All the employees have good relationships with their co-workers. The entire deportment of VSL is computerized. Employees are satisfied with the resources provided to them to successfully do the job. VSL Steels Limited strives to be a good corporate citizen. VSL Steels as a corporate entity believes in inclusive growth of all stakeholders associated with the company In year 2010-11 because of market conditions it has suffered loss to some extent. Company hopes to recover this in the coming year To provide safe, comfortable and good working condition The financial position of the company is very good and it is running in Profit. The opportunities for the company are high as it is not facing much competition. There is an unusual rise in the prices of the raw materials and the company is also facing the problem of delay in payments from its customers.

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SUGGESTIONS

Provide good commission to the traders for further increase of sales.

VSL must enter into new markets.

Improve the technology for the sake of growth in production.

Training program is necessary for all the workers to improve quality of production.

Company still has to make a strict rule to all employees who enters to the production, they have to provide all the safety equipment to them and should make the compulsory check and of the employees who enters the plant. Employee meeting should be held once in three months to solve the problems of employee and to take their valuable suggestion Company should purchase raw materials in near the market

Company adopts Good relationship with the society.

VSL Steels Ltd should try to enter all the regions of India as its new market place.

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CONCLUSION:
VSL Steels Limited is a manufacturer of high quality Pig Iron and is a flag ship company of the trusted "VSL GROUP". VSL is known for its professionalism, Quality, and Competence and is one of the pioneers in mining industry. VSL Steels produces various grades of Pig Iron which are utilized by the foundry industry to produce superior grade and high quality precision casting, VSL Steels has setup a quality assurance Lab with modern equipments along with well qualified staff. Raw materials are checked to ensure their quality by the applicable Indian Standards (IS) Methods. The company's Manpower is its real strength.. VSL steel is a growing company and the demand for its products is increasing. And it has taken up expansion plans also, through its new plant it is expecting good returns. As a result of ongoing expansion activities, in the organization. VSL is a maintaining skilled employees but they are passing out from the industry within two to three years. At present the industry is lacking the skilled employees for the upcoming days of the industry. Also industry has having poor technology machineries few deportment compare to other development industry. VSL steels is a growing company, it has been taken up expansion plans also, it produces the quality products, some of the machines like conveyer belt, costing machines getting trouble for every short period so management has to take necessary steps to overcome the problem. The performance of the V.S.L steels is not satisfactory in the year 2009-2010 because the cost of goods sold is higher than the total income of the company it may be impact of market condition also,

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