Jodhpur National University, Jodhpur | Jhanwar Road, P.O. Narnadi (Boranada) Jodhpur (Rajasthan)India

Report On

BBA 2nd

Semester 2013

Submitted To: - Submitted By:-

Faculty of Management Akshika Kachhawaha

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Acknowledgement

I am very thankful to everyone who supported me for this

assignment and gives their guidance to complete my theses

work effectively and moreover on time.

I am equally grateful to our Faculty of Management, who

gave me moral support and guided me in different matters

regarding the topic.

I feel immensely proud in extending our heartiest thanks to

(Dr.) V.P.Gupta VC, of Jodhpur National University Deen, for

providing me a platform to improve in various fields. They

went out of their way and provide me with open hearted help

and counseling. They have been a source of inspiration for me

and their experience and knowledge have helped me in

learning and giving this report a shape.

Akshika Kachhawaha

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Contents

Chapters Page no.

1. Essar Introduction 4

2. Essar Steel 7

3. Essar Business Group 13

4. Essar Steels by Business Needs 20

4.1. New product development 20

4.2. Cost optimization 22

4.3. Just-in-time delivery 24

4.4. Off-the-shelf products 25

4.5. Customization 26

4.6. Increased efficiency 27

5. Essar Steels by Application 28

5.1. Engineering 29

5.2. Shipbuilding 30

5.3. Automotive 30

5.4. Construction 31

5.5. Railways 31

5.6. White goods 32

5.7. Steel for line pipes 33

5.8. Wind engineering and power generation 33

5.9. Boilers and pressure vessels 34

5.10. Yellow goods 35

6. Conclusion 36

7. Bibliography 37

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Chapter 1 Essar Introduction Essar Steel is a global integrated steel producer with an annual capacity

of 14 million tones with a strong presence in intensive steel consuming

markets of Asia and North America. It has operations in four countries

• A 10 MTPA integrated facilities in India

• A 4 MTPA steel plant in Canada

• A 7 MTPA Taconite plant under execution in USA

• A 0.4 MTPA downstream complex in Indonesia

Essar Steel India is an integrated steel producer with an annual

production capacity of 10 million tones. Essar Steel’s manufacturing

facility comprises ore beneficiation, pellet making, iron making, steel

making, and downstream facilities including cold rolling mill,

galvanizing, pre-coated facility, steel processing facility, extra wide

plate mill and a pipe mill. The steel plant located at Hazira has modern

infrastructure like a

power plant and a port

that can handle 30

million tones cargo

annually.

With a focus on value

added products, it

produces over 300

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grades of steel conforming to quality standards of international

certification agencies like API, ABS, NACE, Lloyd’s Register to name a

few. Essar Steel uses information technology extensively for its

operations thereby ensuring consistent quality of its products.

Essar Steel has set up a 1.5 MTPA plate mill and a 0.6 MTPA pipe mill at

Hazira to add further value to its product portfolio. With one of India’s

largest steel processing and distribution network with a capacity of 4

MTPA located at several industrial hubs, Essar Steel manufactures

customized products catering to a variety of industry segments.

Essar Steel implements rigorous testing and inspection processes to

make sure customers get a product that conforms to the highest

standards of accuracy, consistency and quality. It is conferred with ISO:

9001:2000, ISO 9002, ISO 14001, ISO 27001, OHSAS 18001:1999 etc.

Sustainability has been given due importance in design and operations

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and the company has become a zero waste company. It has received

many accolades and recognitions from reputed institutions like Centre

for Science and Environment, Water Digest, World Steel Association,

Golden peacock, Green Tech foundation, CII, CII-ITC Sustainable

Development Center, Carbon Disclosure Project to name a few.

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Chapter 2 Essar Steel

Essar Steel is a global producer of steel with a footprint in India,

Canada, USA, the Middle East and Asia

We are a fully integrated flat carbon steel manufacturer – from iron ore

to ready-to-market products – with a current capacity of 14 million

tones’ per annum (MTPA). Our products find wide acceptance in highly

discerning consumer sectors such as automotive, white goods,

construction, engineering and shipbuilding.

Essar Steel is one of India's largest exporters of flat

products, exporting to the highly demanding US

and European markets, and to the growing

markets of South East Asia and the Middle East.

A number of major client companies have

approved our steel for their use, including

Caterpillar, Hyundai, Swaraj Mazda, the Konkan Railway, and Maruti

Suzuki. Essar Steel has acquired extensive quality accreditations and

our lean team gives us one of the highest productivities and lowest

manpower costs among steel plants internationally.

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SEAMLESS INTEGRATION OF ESSAR

A major strategic advantage is our high level of forward and backward

integration. We are totally integrated – from raw material to finished

products – adding value at every stage of the manufacturing process.

Our areas of operation include:

Iron ore beneficiation

We have an 8 MTPA plant at Bailadilla (Chhattisgarh) and a 12 MTPA

plant at Dabuna (Odisha), both strategically established to leverage the

rich iron ore deposits of the respective states. The plants pump the iron

ore slurry to Essar Steel pellet plants at Visakhapatnam (Andhra

Pradesh; 267 km pipeline) and Paradip (Odisha; 253 km pipeline)

respectively.

Iron Ore at Odisha

Pelletization

We have an 8 MTPA pelletization plant at Visakhapatnam and a 6 MTPA

pellet plant at Paradip, both of which provide vital raw material to our

steel plant at Hazira (Gujarat).

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Iron and steel

We have a fully integrated world-class facility at Hazira, housing the

world's fourth largest single-location steel plant. It has a steel-making

capacity of 10 MTPA, holds ISO: 9001:2000, IS 9002 and TUV and ISO

140001 certification and is India Chiller Energy Efficiency Project (ICEEP)

Protocol compliant.

The facility also houses a 6.8 MTPA sponge iron plant (the world's

largest gas-based sponge iron plant in a single location); a 1.5 MTPA

plate mill (the largest in India); a 0.6 MTPA pipe mill with internal and

external coating facilities of up to 2 million square meters annually; and

a 1.4 MTPA cold rolling complex comprising two galvanizing lines, a

batch annealing furnace and a skin pass mill.

Steel processing

We have a downstream capability hub at Pune (Maharashtra),which

houses a 0.6 MTPA cold rolling plant, a 0.5 MTPA galvanizing plant, a

0.4 MTPA color coating plant, and a 0.65 MTPA pickling line.

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Steel distribution

Essar Steel is the first steel company to set up an end user distribution

chain for steel products under the brand names Essar Hypermart and

Essar Expressmart. Hypermart is the world's largest steel retail chain

with a network of over 375 retail outlets across India, Indonesia, Nepal

and the Middle East.

Essar Steel's processing and distribution facilities are the largest in India

with an aggregate annual capacity of 4 million tonnes from its facilities

in Pune (Maharashtra), Hazira (Gujarat), Bahadurgarh (National Capital

Region), Chennai (Tamil Nadu), Bhuj (Gujarat) and Dubai (UAE).

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INTERNATIONAL PRESENCE OF ESSAR

Essar Steel Algoma, Canada

Established in 1901, Essar Steel Algoma is a fully integrated steel

producer based in Sault Ste. Marie (Ontario). With a current production

capacity of 4 MTPA, the plant specializes in providing total steel

solutions to North American flat roll customers.

Foundation Stone of Essar Steel at Algoma, Canada

PT Essar Indonesia

PT Essar located in West Java (Jakarta), is Indonesia's largest private

sector flat products company, with a domestic market share of 35 per

cent and a history of process and product innovation.

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Essar Steel Processing & Distribution UK

Essar Steel has a 0.5 MTPA steel processing center in Dudley (West

Midlands) offering services for SCS, pickling and oiling in coil form,

slitting and decoiling.

Essar Steel Minnesota LLC, USA

Essar Steel has established a 6 MTPA integrated pellet plant on the

Mesabi iron range in north-east Minnesota, along with a concentration

plant and direct reduced iron plant.

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Chapter 3 Essar Business Group

Essar Global Limited is a diversified business corporation with a

balanced portfolio of assets in the manufacturing and services sectors

of Steel, Oil and Gas, Power, Communications, Shipping ports and

logistics, and Construction. We believe in seizing opportunities to

expand our reach. Having a vintage of over 40 years, today Essar has

evolved into a diversified global business group.

1) Essar Energy

2) Essar Power

3) Essar Oil

4) Essar Communications

5) Consumer Durables and IT Retail

6) Essar Shipping

7) Essar Ports

8) Essar Projects

9) Essar Services – Aegis BPO

Essar Energy

Essar Energy is a world-class, low-cost, integrated energy company

focused on India and positioned to capitalize on India's rapidly growing

energy demand. We have an established track-record and assets worth

US$12 billion across the power and oil and gas industries.

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The combined assets of Essar Power and Essar Oil constitute Essar

Energy, which was listed on the London Stock Exchange in 2010

following a highly successful Initial Public Offer (IPO), the second-largest

overseas IPO ever floated by a company of Indian origin.

Essar Power

Essar Power is among India's top private sector power producers with a

current generation capacity of 3,055 MW spread across several power

plants in India and Canada. This capacity is being expanded to 4,510

MW by end-2012 and to 6,700 MW by 2014. It is one of the lowest-cost

power producers and owns about 500 million tons of coal reserves and

resources in blocks spread across four continents.

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Essar Oil

Essar Oil is a fully integrated oil and gas company of international scale

with a strong presence across the hydrocarbon value chain – from

exploration and production to oil retail. The company has access to a

global portfolio of conventional and unconventional, onshore and

offshore oil and gas blocks, with about 35,000 sq. km available for

exploration. The company is also the largest coal bed methane (CBM)

player in India.

Currently, Essar Oil India has over 405,000 barrels per stream day

(bpsd) of crude refining capacity at Vadinar in Gujarat, India;

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Essar Oil UK has over 296,000 bpsd of crude refining capacity at

Stanlow in Cheshire, United Kingdom; and Essar Energy has a 50-per

cent controlling stake in Kenya Petroleum Refineries, which operates a

refinery in Mombasa, Kenya, with a capacity of 80,000 bpsd.

Essar Oil has over 1,600 Essar-branded oil retail outlets in various parts

of India. Essar has also embarked upon entering the African retail

market by opening its first retail outlet in Kenya.

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Essar Communications

Essar Communications is a global player in the communications sector

with a presence in telecom services, consumer durables and IT retail.

Vodafone, its GSM-based mobile services network, has more than a

million subscribers; in the telecom retail space,

The Mobile Store is the largest telecom retailer within the organized

sector (over 900 outlets across India).

Consumer Durables and IT Retail

Essar has launched India's first countrywide chain of multi-brand and

multi-service outlets in the telecom retail space. 'The Mobile Store'

currently runs over 1,200 outlets in over 150 Indian cities and towns;

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and 'The Electronic Store' has seven outlets across India. 'The Mobile

Store' is the largest Indian telecom retailer within the organized sector.

It plans to offer 250 more stores this year, while 'The Electronic Store'

plans to open 20 more.

Essar Shipping

Essar Shipping is an integrated logistics solution provider with a

presence in sea transportation, logistics and oilfield services. The

company currently has a fleet of 27 vessels, with an additional 12 new

ships on order. It provides contract drilling services to global oil majors,

with a fleet of 12 onshore rigs and one semi-submersible offshore rig;

and two new jack-up rigs on order.

Essar Ports

Essar Ports is one of the largest owners and operators of ports in India.

The company has an existing aggregate capacity of 88MMTPA across

two facilities located at Vadinar (58MMTPA) and Hazira (30MMTPA) in

the state of Gujarat, on the west coast of India. It is currently in the

process of increasing its aggregate ports capacity to 158MMTPA at a

number of locations across India.

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Essar Projects

Essar Projects is the second largest engineering, procurement and

construction (EPC) companies in India. Its EPC capabilities have helped

build all of Essar's industrial assets in India in the sectors of steel, oil

and gas, power, and ports and terminals. The company is increasingly

using its expertise to execute large external projects across the world.

Essar Services – Aegis BPO

Aegis is Essar's BPO arm. A global leader in business process

outsourcing (BPO), it employs over 55,000 employees with expertise in

the telecom, BFSI, travel and hospitality, consumer goods, retail and

healthcare domains as well as engineering services. Aegis serves several

Fortune 500 companies from 50 delivery centers across 12 countries.

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Chapter 4 Essar Steels

by Business Needs Essar Steels keeps their important needs to be very effective and

1. New product development

2. Cost optimization

3. Just-in-time delivery

4. Off-the-shelf products

5. Customization

6. Increased efficiency

New product development

Creating to deliver innovative products that fulfill market demand is a

major driver for product development. With a knowledge of the market

and value addition through continuous improvement in the process,

Essar Steel holds the key position in market segments such as auto

motives, white goods, shipbuilding, boilers and pressure vessels,

structural and general engineering.

Essar Steel has developed several grades of steel for different

automotive applications and is the leading supplier of hot and cold

rolled steel to the automotive sector. Its high strength dent and crash

resistance steel is widely accepted in the automotive OEMs in India.

Essar Steel's new class of high strength steel for long member / cross

members application provides the potential for weight reduction and

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increased efficiency of the vehicle. The company has developed steel

which meets the stringent demands of automotive wheel

manufacturers. Through a joint venture with Kobe steel Japan, Essar

Steel produces surface critical skin panel grades and high strength steel

for the "A" class premier passenger car segment.

The extra wide heavy plates by Essar Steel are tailor-made for

specialized applications. They meet the stringent demand of critical

segments such as boilers and pressure vessels, and shipbuilding

providing grades as per global standards. Essar Steel is one of the few

manufacturers globally, capable of producing American Petroleum

Institute (API) grade steel, with a supply track record of over 3 million

tonnes. The Essar Steel pipe mill is API certified to make pipes of low

sulphur that find wide acceptance from international oil and gas

majors.

Applications International grades

HR for long & cross members EN 10149-2: S 550MC, S 650MC, S 700MC

HR for wheel rim & disc SPFH540 / 590, DP590

Cold rolled steel for exposed panels BH180 / 220

Cold rolled high forming & dent

resistant steel

IFHS340 / 390 / 440

High strength CR steels for

supporting structures

SPRC440, HSLA340 / 420

New automotive grades

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Cost optimization

For complete customer delight and for retaining customers, value

engineering proposition for cost saving is one of Essar Steel’s key focus-

driven areas. This proposition is reflected in new product development.

Essar Steel’s dent resistant steel offers weight saving up to 15%. Its new

class of HSLA for long members for truck applications has been

reported to offer weight reduction of 20% with improved performance.

The Essar Steel heavy plates reduce costs to the tune of 20% in terms of

fabrication, manpower and handling. Advanced technology could be

leveraged to the customer end in terms of changing supply condition to

alter / desired properties realizing a weight saving potential of 20%, for

instance, in case of direct quenched heavy plates, special micro alloyed

grades and custom made grades, could offer weight saving potential to

high-end segments. Custom-made ready-to-use beams shorten project

time and thus optimize costs and maximize productivity.

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Essar Steel processing and distribution facilities customize steel, reduce

processing and manufacturing time, resulting in enhanced productivity

for the customer. The following example illustrates Essar Steel’s value

engineering proposition.

High strength substitution contributing to weight reduction and resulting in optimizing cost is well-illustrated in the

following example.

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Just-in-time delivery

Essar Steel ensures that the customer remains free from the task of

managing his inventory levels. The Just-in-time (JIT) delivery model

helps customers control them, prevent stockouts and keep their

production lines moving. Through close coordination with the

customer, Essar Steel helps them minimize their costs and maximize

their productivity.

The Essar Hypermart network of over 600 retail outlets further aids JIT

delivery through close proximity to most end-users. Backed by the Essar

Steel processing and distribution facilities and Essar Steel’s supply chain

management, customers can avail steel and steel products as and when

required at their doorstep.

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Off-the-shelf products

In today’s market scenario, most customers prefer to buy steel

products off-the-shelf. Hence, the Essar Hypermart is greatly beneficial

offering customers a wide range of steel products in various grades,

sizes and quantities under one roof. In order to make steel available

directly to the end-user, Essar Hypermart has established the world’s

largest steel retail network of over 600 outlets that stock Essar Steel

products.

Essar Steel processing and distribution provides tailor-made steel

supply solutions and it allows customers to purchase products directly

off-the-shelf. Customers are guaranteed steel products at the right

price, good quality and JIT delivery to give them a competitive edge in

their markets. (www.essarhypermart.in)

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Customization

Essar Steel produces highly-customized products catering to a variety of

product segments. Right from the hot rolled steel through the entire

product range, customers can order for products in customized sizes

and quantities. In today’s rapidly changing market, the ability to meet

the specific and stringent demands of applications gives steel

manufacturers the cutting edge. Essar Steel processing and distribution

facilities offer tailor-made steel supply solutions that help reduce

inventory levels, optimize costs and maximize productivity.

The products and services range from providing cut-to-size, burnt-to-

shape flat steel to providing custom-built components. Special beams

are available in an extensive range of shapes and profiles, which

provide designers and construction engineers with maximum flexibility

in selecting the optimum structural steel section for their specific

application.

With extensive quality accreditation, the Essar Steel lean team offers

the highest productivity along with the lowest manpower costs among

steel plants internationally.

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Increased efficiency

At Essar Steel, we have undertaken several key initiatives to enhance

efficiency for faster and swifter delivery of products in terms of product

quality and development, and service. Essar Steel believes close

interface with the customer is one of the effective ways of achieving

competitive advantage. Its internationally-renowned application

engineering team captures customer requirements and tailors the

product fast.

An IT- enabled web-based portal facilitates online tracking of the order,

making the entire downstream supply chain from ordering to end-

delivery the quickest in the country. An online customer complaint

portal responds to the customer within 24 hours.

The port-based locations of all our plants and facilities give Essar Steel a

tremendous logistical advantage. An integrated logistics system that

includes an expansive offshore and onshore fleet of vehicles ensures

that Essar Steel is able to meet execution targets and deliver quickly

and efficiently world over.0

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Chapter 5 Essar Steels

by Application

1. Engineering

2. Shipbuilding

3. Automotive

4. Construction

5. Railways

6. White goods

7. Steel for line pipes

8. Wind engineering and power generation

9. Boilers and pressure vessels

10. Yellow goods

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Engineering

Essar Steel manufactures high quality hot rolled steel conforming to

various national and international standards for various engineering

applications such as equipment manufacturing, industrial

fabrication, kilns and gates for hydro projects, crane girders turbine

runners, etc.

Dimensions

Thickness 1.6 – 150 mm

Width 900 – 4,950 mm (mill edge)

900 – 4,850 mm (trimmed edge)

Length 3,000 – 25,000 mm

Dimensional tolerances As per relevant international standards

Supply condition

Sheet / Plates

Coils form (up to 20mm thickness & maximum width 2,000mm)

As-rolled

Thermo-mechanically processed

Furnace normalised

Shot blasted and painted

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Shipbuilding

Essar Steel manufactures high quality hot rolled steel sheets / plates

conforming to various national and international standards for the

shipbuilding industry that meet the critical requirements of various

applications such as offshore structures, platforms, bulk carriers, cargo,

etc. Essar Shipper plates specifically cater to shipbuilding segment.

Automotive

Essar Steel has comprehensive portfolio of hot rolled and cold rolled

steel products, which finds usage in a variety of automotive

applications, which includes panels, structural members,

reinforcements, pillars, etc.

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Construction

Essar Steel manufactures a wide range of products that includes hot

rolled, galvanised steel, colour coated steel and plates for the

construction industry that meet requirements of various applications

such as civil structures, multiplexes, bridges, dams, highways, telecom

towers, power projects, mega residential and non-residential

complexes. Essar Structor plates specifically cater to Construction

segment.

Railways

Essar Steel manufactures structural grade, corrosion resistant steels

most commonly known as CORTON steel and steel plates for railway

applications such as freight stock (wagons), containers, railway carts,

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coaches, bridges, etc.

Essar Steel is the pioneer in producing special grade steel and steel

plates and has been a consistent supplier to the railways. Essar

Locomotors plates specifically cater to railway segment.

White goods

Essar Steel, to keep pace with the market trends in white goods

segment, produces high quality cold rolled, galvanized and color coated

steel that meet the stringent application demands of white goods /

appliance segment where aesthetics play a crucial role.

Galvanized steel

The Galvanized Plain Skin Pass (GPSP) is widely used in the white goods segment. This product offers advantage in terms of:

Excellent corrosion resistance

Close dimensional tolerance

Color coated steel products

High quality and flexible supply of color coated steel sheets offers extensive design options and also maximizes process efficiency for white goods.

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Steel for line pipes

Essar Steel manufactures steel for line pipe application as per the

international standards, especially the American Petroleum Institute

(API) standards. The steel plates are used for making pipes for the

transport of oil, gas, water and for making offshore structures.

Essar Acidor and Essar Fluidor specifically cater to line pipe segment.

Wind engineering and power generation

Essar Steel manufactures high quality plates conforming to all

international standards. The wider plate provides the designers with

the flexibility of size optimization for reducing welding and fabrication

cost of wind towers.

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Boilers and pressure vessels

Essar Steel manufactures high quality plates that meet the critical

requirements of various boiler applications such as in power plants,

process industries, refineries, coal gasifies and petrochemical

exchangers; and pressure vessel applications such as in process

industries, power plants, nuclear power plants and space applications.

High Strength Low Alloy Steel Plate (HSLA) from Essar Steel offers plates

of ultra-high strength with hardness up to 500 BHN.

Essar Thermor plates specifically cater to Boilers and Pressure Vessels

segment.

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Yellow goods

Essar Steel manufactures high quality hot rolled steel and plates that

meets the critical requirements of yellow goods for applications such as

mining equipment, excavators, crushers, dumper, trucks, front loaders,

agriculture machines, etc. Our specialty grade for yellow goods and

mining finds extensive usage where high abrasion and wear resistance

is a prime requirement. Essar Rockstar plates specifically cater to Yellow

Good segment.

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Conclusion In the nutshell, I would like to say since its foundation, Essar has recognized the greater role industry plays in the development of a country like India where large sections of society suffer from severe economic and social disadvantages.

Today, as a global enterprise Essar adopts a multi-pronged strategy to address the many aspects of sustainable and responsible business. Whether it is the safety and health of its employees, business practices that affect the environment or the welfare and development of neighboring communities and the wider society, Essar constantly strives to move beyond regulatory standards and do more.

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Bibliography

http://en.wikipedia.org/wiki/Essar_Steelwww.

managementparadise.com

http://www.essarsteel.com

http://www.essar.com

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