INDUSTRY PROFILE

Indian steel Industry:-

India is the eighth largest producer of crude steel in the world, accounting for

3.37% of the global steel production in 2005. India’s finished carbon steel

production grew to reach an estimated 42.63mmt in 2005-06; primary producers

alone contributed about 38% whereas secondary producers contributed the rest.

With reference in changes in economy Indian steel industry is poised for

massive expansion. Dramatic consumption growth over the last few years has

stimulated enormous expansion plans, facilitated by a relatively unexploited

iron ore raw material base. India is now being hailed as the new China, where

crude steel production soared from less than 100m tonnes in 1995 to over 400m

tonnes in 2006.This report focuses on detailed study about the Indian Steel

Industry. Steel became an integral part of development. It discusses basic steel

manufacturing processes like Blast Furnace and, Electric arc Furnace, industry

value chain with a special reference to major raw material trends and price

trends of steel products. Demand –supply dynamics has been discussed along

with key growth drivers and Export-Import scenario. It also talks about Issues &

challenges of the steel industry, mergers and acquisitions, government policies

and regulations. Top 10 Leading Players in steel Industry have been profiled

namely Steel Authority of India (SAIL), Tata Steel, ESSAR Steel and JSW

Steel in this report and analyzed on the basis of financial and operational

performance and compares their Competitive Positioning along with future

outlook in the light of increasing trend in investments in the domestic

industry .Steel Industry in India is on an upswing because of the strong global

and domestic demand. India's rapid economic growth and soaring demand by

sectors like infrastructure, real estate and automobiles, at home and abroad, has

put Indian steel industry on the global map. According to the latest report by

International Iron and Steel Institute (IISI), India is the seventh largest steel

producer in the world. With reference to development which revised Indian

infrastructure, the origin of the modern Indian steel industry can be traced back to 1953

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when a contract for the construction of an integrated steelworks in Rourkela, Orissa was

signed between the Indian government and the German companies Fried Krupp und

Demag AG. The initial plan was an annual capacity of 500,000 tonnes, but this

was subsequently raised to 1 million tonnes. The capacity of Rourkela Steel

Plant (RSP), which belongs to the SAIL (Steel Authority of India Ltd.) group, is

presently about 2 million tonnes. At a very early stage the former USSR and a

British consortium also showed an interest in establishing a modern steel

industry in India. This resulted in the Soviet-aided building of a steel mill with a

capacity of 1 million tonnes in Bhilai and the British-backed construction in

Durgapur of a foundry which also has a million tonne capacity. The Indian steel

industry is organized in three categories i.e., main producers, other major

producers and the secondary producers. The main producers and other major

producers have integrated steel making facility with plant capacities over 0.5

mT and utilize iron ore and coal/gas for production of steel. The main producers

are Tata Steel, SAIL, and RINL, while the other major producers are ESSAR,

ISPAT and JVSL. The secondary sector is dispersed and consists of: (1)

Backward linkage from about 120 sponge iron producers that use iron ore and

non-coking coal, providing feedstock for steel producers; (2) Approximately

650 mini blast furnaces, electric arc furnaces, induction furnaces and energy

optimizing furnaces that use iron ore, sponge iron and melting scrap to produce

steel; and (3) Forward linkage with about 1,200 re-rollers that roll out semis into

finished steel products for consumer use. The history of steel making in India can be

traced back to 400 BC when the Greek emperors used recruit Indian archers for their

army who used arrowstipped with steel. Many more evidences are there of Indians

perfect knowledge of steel-making long before the advent ofChrist. Archeological finds

in Mesopotamia and Egypt testify to the fact that 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 Qutb Minar inDelhi.The pillar,

built between 350 and 380 AD, did not rust so far an engineering marvel that baffles the

scientist even today. Yet another engineering feat is the famous sun temple at konark in

Orissa, built around 1200AD, where steel structural were used for the first time in the

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world. These were the halcyon days when India flourished in all direction 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 country

only a supplier of raw materials. Steel Role plays a vital role on the development of any

modern economy. The per capita consumption of steel is generally accepted as yardstick

to measure the level of social-economic development and living standards of the people.

As such, no developing country can afford to ignore the steel industry

WORLD STEEL PRODUCTION IN THE 20th CENTUTY

Over the course of the 20th century, production of crude steel has risen at an astounding

rate, now fast approaching a production level of 800 million tons per year. Today, it is

difficult to imagine a world without steel.

During the 20th century, the consumption of steel increased at an average annual rate of

3.3%. In 1900, the USA was producing 37% of the world’s steel. With post war industrial

development in Asia that region now (at the turn of the century) accounts for almost 40%,

with Europe (including the former Soviet Union) producing 36% and North America

14.5%.

Steel consumption increases when economies are growing, as governments invest in

infrastructure and transport, and build new factories and houses. Economic recession

meets with a dip in steel production as such investments falter. If you were to overlay the

above graph with a time sheet showing major historical events, the peaks and dips

become meaningful. Note for example the peaks corresponding to the years of the two

World Wars, followed each time by a dip, and soon after by strong climbs as the major

economies recovered from the war and entered new periods of prosperity and growth,

most notably in the 1950s and 1960s. The trend over the past three decades can also be

seen to be in line with cyclical economic trends, with alternating periods of prosperity

and recession.</ref>.)That was the period when the steel industry developed in Western

Europe and the USA followed by the Soviet Union, Eastern Europe and Japan. However,

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steel consumption in the developed countries has reached a high stable level and growth

has tapered off.

After being in the focus in the developed world for more than a century, attention has

now shifted to the developing regions. In the West, steel is referred to as a sunset

industry. In the developing countries, the sun is still rising, for most it is only a dawn.

Towards the end of the last century, growth of steel production was in the developing

countries such as China, Brazil and India, as well as newly developed South Korea. Steel

production and consumption grew steadily in China in the initial years but later it picked

up momentum and the closing years of the century saw it racing ahead of the rest of the

world. China produced 220.1 million tonnes in 2003, 272.2 million tonnes in 2004 and

349.36 million tonnes in 2005. That is much above the production in 2005 of Japan at

112.47 million tonnes, the USA at 93.90 million tonnes and Russia at 66.15 million

tonnes.

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GROWTH AND DEVELOPMENT OF INDUSTRY

Amongst the other newly steel-producing countries, South Korea has stabilised at around

46-48 million tonnes, and Brazil at around 30 plus million tonnes. This brings the focus

of the industry to India. Considering a steel consumption of 300 kg per man per year to

be a fair level of economic development, India will have to come up to somewhere

around 300 million tonnes, if it is to fulfil its ambitions of being a developed country.

That of course is a long journey from the present production level of around 50 million

tonnes but one must consider its past before coming to a conclusion about its potential.

India was producing only around a million tonnes of steel at the time of its independence

in 1947. By 1991, when the economy was opened up steel production grew to around 14

million tonnes. Thereafter, it doubled in the next 10 years, and then it is doubling again,

maybe over a slightly longer span. Steel Production in India is expected to reach 124

million tons by 2012 and 275 million tons by 2020 which could make it the second

largest steel maker. 

In the developed countries, the trend is on consolidation of industry. Cross-border

mergers have been taking place for several years. The focus is on technological

improvements and new products.

Globally, the steel industry became a billion tonne industry in 2004. How much more it

will grow will depend primarily on how much more steel is consumed in the developing

countries.

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STEEL MANUFACTURING COMPANIES IN INDIAThere are several Companies who are continuously working in this sector and are

continuously meeting the growing demand all over the country.

• SAIL/Steel Authority of India Limited

• TATA – TISCO

• RNIL

• Essar Steel

• Jindal Steel

• ISPAT

• Saesa Goa

• Nippon Denro Ispat

• Usha Ispat

• Lanco Industries Limited

GOVERNMENT POLICIES FOR STEEL INDUSTRY

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Some of the important policy measures have been framed by the Ministry of Steel and

they assist about these policies to the private companies. Important Policy Measures

i. In the new Industrial Policy announced in July, 1991 Iron and Steelindustry, among

others, was removed from the list of industries reserved for the public sector and also

exempted from the provisions of compulsory licensing under the Industries

(Development and Regulation) Act, 1951.

ii. With effect from 24.5.92, Iron and Steel industry has been included in the list of `high

priority' industries for automatic approval for foreign equity investment upto 51%. This

limit has been recently increased to 100%.

iii. Price and distribution of steel were deregulated from January 1992. At the same time,

it was ensured that priority continued to be accorded for meeting the requirements of

small scale industries, exporters of engineering goods and North Eastern Region of the

country, besides strategic sectors such as Defence and Railways.

iv.The trade policy has been liberalised and import and export of iron and steel is freely

allowed. There are no quantitative restrictions on import of iron and steel items, covered

under Chapter No. 72 of the ITC(HS) Code. The only mechanism regulating the imports

is the tariff mechanism. Tariffs on various items of iron and steel have drastically come

down since 1991-92 levels and the government is committed to bring them down to the

international levels. In Chapter 72 there are two items viz. 72042110 and 72042910,

which fall in the restricted list of imports.

v. Iron & Steel are freely importable as per the Extant Policy.

vi. Iron & Steel are freely exportable.

vii. Advance Licensing Scheme allows duty free import of raw materials for exports

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.

viii. The floor price for seconds and defectives continues till date.

ix. Imports of seconds and defectives of steel are allowed only through three designated

ports of Mumbai, Calcutta and Chennai.

x. Mandatory pre inspection certificate by a reputed international agency for every import

consignment of seconds and defectives.

xi. In the union Budget 2007-08 the import duty on seconds and defective has been

further reduced from 20% to 10%.

STRUCTUAL WEAKNESSES OF INDIAN STEEL INDUSTRY

Although India has modernized its steelmaking considerably, however, nearly6% of its

crude steel is still produced using the outdated open-hearth process.Labour productivity

in India is still very low. According to an estimate crudesteel output at the biggest Indian

steelmaker is roughly 144 tonnes per workerper year, whereas in Western Europe the

figure is around 600 tonnes

India is deficient in raw materials required by the steel industry. Iron ore

deposits are finite and there are problems in mining sufficient amounts of it.

India's hard coal deposits are of low quality. Insufficient freight capacity and transport

infrastructure impediments too hamper the growth of Indian steel industry.

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STRENGHTS OF INDIAN STEEL INDUSTRY• Low labour wage rates

• Abundance of quality manpower

• Mature production base

• Positive stimuli from construction industry

• Booming automobile industry

OUTLOOKThe outlook for Indian steel industry is very bright. India's lower wages and favourable

energy prices will continue to promise substantial costadvantages compared to production

facilities in (Western) Europe or the US. It is also expected that steel industry will

undergo a process of consolidation since industry players are engaged in an unfettered

rush for scale. This is evident from the recent acquisition of Corus by Tata. The

deployment of modern production systems is also enabling Indian steel companies to

improve the quality of their steel products and thus enhance their export prospects.

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Type:- State-owned enterprise

Public (NSE: SAIL)

Industry :- Steel

Founded :- 1954

Headquarters :- Ispat Bhawan,

New Delhi, India

Key people:- C.S. Verma (Chairman)

Revenue :- 41,356.50 crore (US$ 9.39 billion)

Net income:- 6,791.09 crore (US$ 1.54 billion)

Total assets:- 46,449.78 crore (US$ 10.54 billion)

Employees:- 131,910 (2006)

Website:- www.sail.co.in

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COMPANY PROFILE

Steel Authority of India Limited (SAIL) is the leading steel-making company in

India. It is a fully integrated iron and steel maker, producing both basic and

special steels for domestic construction, engineering, power, railway,

automotive and defense industries and for sale in export markets.

During struggle for independence, Pt. Jawaharlal Nehru, our first Prime

Minister, had a very clear vision about the role of Steel in the development of

our country. Although TATA Iron & Steel Company (TISCO) has been

establishment in 1907 marking the beginning of Indian Steel Industry followed

by Indian Steel Co. (1918), they were too small to meet the development

requirements of a big country like ours. Therefore, in the 1st Industrial Policy

Resolution of the Govt., soon after independence, Govt. decided to establish

Steel Plants in Public Sector. However, work could be started at fast pace only

in 1954, when Hindustan Steel Ltd., was formed and three Steel Plants of 1 MT

capacity each, were established with provision of further expansion at Bokaro,

Rourkela and Durgapur with assistance from USSR, West Germany and U.K.

respectively.

To improve the functioning of Steel Industry, Govt. decided to form a holding

company during 1972, which was named as Steel Authority of India Ltd.,

(SAIL) and the same was incorporated on January 24, 1973, with an authorized

capital of Rs.2000 crores.

SAIL was formed by registration of a company under the companies Act andnot by the

Act of Parliament. Govt., decided to abandon the holding companyconcept in 1978 and a

bill was presented to the Lok Sabha. Accordingly, SAIL was again recognized in the

following manner

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Hindustan Steel Ltd., Bokaro Steel Ltd., Salem Steel Ltd., SAIL InternationalLtd., Bhilai

Ispat Ltd., Rourkela Ispat Ltd., Durgapur Ispat Ltd., wholly ownedsubsidiaries of SAIL

merged into it and started functioning as Units of SAIL

MECON, HSCL and NMDC become independent Companies and started

functioning under Ministry of Steel. However, Kiriburu and Meghatuburu Iron

Ore Mines were attached with BSL as their Captive Mines. Bharat Refectories Ltd. also

became independent under the Ministry of Steeland refractory units also came under

them.

Thus, SAIL, at present, is having capacity of 12 MT of crude steel through itsfour

integrated Steel Plants, at Bokaro, Bhilai, Durgapur and Rourkela. Twospecial steel

plants at Durgapur and Salem produce a wide range of alloy andspecial steels. Marketing

of the products from these plants is done through acountry wide distribution network

consisting of a chain of Stock Yards anddistribution network.

SAIL today is one of the largest industrial entities in India. Its strength has beenthe

diversified range of quality steel products catering to the domestic as well asthe Export

markets and a large pool of technical and professional expertise.

Ranked amongst the top ten public sector companies in India in terms of

turnover, SAIL manufactures and sells a broad range of steel products,

including hot and cold rolled sheets and coils, galvanized sheets, electrical

sheets, structural, railway products, plates, bars and rods, stainless steel and

other alloy steels. SAIL produces iron and steel at four integrated plants and

three special steel plants, located principally in the eastern and central regions

of India and situated close to domestic sources of raw materials, including the

Company’s iron ore, limestone and dolomite mines.

SAIL’s wide range of long and flat steel products are much in demand in the

domestic as well as the international market. This vital responsibility is carried

out by SAIL’s own Central Marketing Organization (CMO) and the

International Trade Division. CMO encompasses a wide network of 38 branch

offices and 47 stockyards located in major cities and towns throughout India.

With technical and managerial expertise and know-how in steel making gained

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over four decades, SAIL’s Consultancy Division (SAILCON) at New Delhi

offers services and consultancy to clients world-wide. AIL has a well-equipped Research

and Development Centre for Iron and Steel (RDCIS) at Ranchi which helps to produce

quality steel and develop new technologies for the steel industry. Besides, SAIL has its

own in-house Centre for Engineering and Technology (CET), Management Training

Institute (MTI) and Safety Organization at Ranchi. SAIL’s captive mines are under the

control of the Raw Materials Division in Calcutta. The Environment

ManagementDivision and Growth Division of SAIL operate from their headquarters

inCalcutta. Almost all SAIL’s plants and major units are ISO Certified. Steel Authority of

IndiaLimited (SAIL) is one of the largest state-owned steel makers in India. With a

turnover of Rs.48,681 crore, the company is among the top five highest profit earning

corporates 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 an operating company.

Incorporated on January 24, 1973, SAIL has more than 131,910 employees. The

company's 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. SAIL is a public sector

company,owned and operated by the Government of India. According to a recent survey,

SAIL is one of India's fastest growing Public Sector Units

OWNERSHIP AND MANAGEMENT

The Government of India owns about 86% of SAIL's equity and retains voting

control of the Company. However, SAIL, by virtue of its "Navratna" status,

enjoys significant operational and financial autonomy

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INTEGRATED STEEL PLANTS

1.Bokaro Steel Plant (BSL) in Jharkhand

Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started taking shape

in 1965 in collaboration with the Soviet Union. It was originally incorporated as a limited

company on 29th January 1964, and was later merged with SAIL, first as a susidiary and

then as a unit, through the Public Sector Iron & Steel Companies (Restructuring &

Miscellaneous Provisions) Act 1978. The construction work started on 6th April 1968.

The Plant is hailed as the country’s first Swadeshi steel plant, built with maximum

indigenous content in terms of equipment, material and know-how. Its first Blast Furnace

started on 2nd October 1972 and the first phase of 1.7 MT ingot steel was completed on

26th February 1978 with the commissioning of the third Blast Furnace. All units of 4 MT

stage have already been commissioned and the 90s' modernisation has further upgraded

this to 4.5 MT of liquid steel.

The new features added in modernisation of SMS-II include two twin-strand slab casters

along with a Steel Refining Unit. The Steel Refining Unit was inaugurated on 19th

September, 1997 and the Continuous Casting Machine on 25th April, 1998. The

modernisation of the Hot Strip Mill saw addition of new features like high pressure de-

scalers, work roll bending, hydraulic automatic gauge control, quick work roll change,

laminar cooling etc. New walking beam reheating furnaces are replacing the less efficient

pusher type furnaces.

A new hydraulic coiler has been added and two of the existing ones revamped. With the

completion of Hot Strip Mill modernisation, Bokaro is producing top quality hot rolled

products that are well accepted in the global market.

Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled Plates, Hot

Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates (TMBP) and

Galvanised Plain and Corrugated (GP/GC) Sheets. Bokaro has provided a strong raw

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material base for a variety of modern engineering industries including automobile, pipe

and tube, LPG cylinder, barrel and drum producing industries.

People - The moving force

Bokaro Steel values its people as the fulcrum of all organisational activities. The saga of

Bokaro Steel is the story of Bokaroans erecting a gigantic plant in the wilderness of

Chhotanagpur, reaching milestones one after another, staving off stiff challenges in the

liberalised era, modernising its facilities and innovating their way to the top of the heap

Directions

Bokaro Steel is working towards becoming a one-stop-shop for world-class flat steel in

India. The modernisation plans are aimed at increasing the liquid steel production

capacity, coupled with fresh rolling and coating facilities. The new facilities will be

capable of producing the most premium grades required by the most discerning customer

segments.Brand Bokaro will signify assured quality and delivery, offering value for

money to the customers.

2.Durgapur Steel Plant (DSP) in West Bengal

Set up in the late 50's with an initial annual capacity of one million tonnes of crude steel

per year, the capacity of Durgapur Steel Plant (DSP) was later expanded to 1.6 million

tonnes in the 70's. A massive modernisation programme was undertaken in the plant in

early 90's, which, while bringing numerous technological developments in the plant,

enhanced the capacity of the plant to 2.088 million tonnes of hot metal,1.8 million tonnes

crude steel and 1.586 million tonnes saleable steel. The entire plant is covered under ISO

9001: 2000 quality management system.

The modernized DSP now has state-of –the-art technology for quality steel making. The

modernized units have brought about improved productivity, substantial improvement in

energy conservation and better quality products. DSP’s Steel Making complex and the

entire mills zone, comprising its Blooming & Billet Mill, Merchant Mill, Skelp Mill,

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Section Mill and Wheel & Axle Plant, are covered under ISO: 9002 quality assurance

certification.

With the successful commissioning of the modernized units, DSP is all set to produce

2.088 million tones of hot metal, 1.8 million tones of crude steel and 1.586 million tones

of saleable steel annually.

PRODUCT-MIX TONNES/ANNUM

Merchant Products 2,80,000

Structural 2,07,000

Skelp 1,80,000

Wheels & Axles 58,000

Semis 8,61,000

Total Saleable steel 15,86,000

Location

Situated at a distance of 158 km from Calcutta, its geographical location is defined as 230

27' North and 880 29' East. It is situated on the banks of the Damodar river. The Grand

Trunk Road and the main Calcutta-Delhi railway line pass through Durgapur.

Environment control

Durgapur Steel Plant has always made relentless efforts to maintaining a healthy and

clean environment. The units in DSP are provided with necessary pollution control

facilities and the liquid effluents and chimney emissions from the plant are well within

norms. DSP has undertaken massive afforestation to maintain clean environment. Some

3,266 acres of land have been covered with 14 lakh plantations. In order to develop

healthy awareness about the environment amongst the younger generation, eco-clubs

have been formed in DSP schools

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Centre for Human Resource Development

DSP has always attached maximum importance on proper training and development of its

employees. Its Centre for Human Resource Development has all modern facilities

including the state-of-the-art Electrical and Electronics laboratory, Hydraulics and

Pneumatics laboratory and workshop for effective training and development of its

employees. 

Communication

The Public Relations Department publishes monthly house journals in English, Bengali

and Hindi for extensive information of company affairs to the employees. DSP also has

an in-house TV studio (DSTV) along with all modern facilities, which telecast news and

a gamut of other programs covering various aspects of plant and township activities

3.Rourkela Steel Plant (RSP) in Orissa

Rourkela Steel Plant (RSP), the first integrated steel plant in the public sector in India,

was set up with German collaboration with an installed capacity of 1 million tonnes.

Subsequently, its capacity was enhanced to 1.9 million tonnes.

The plant was modernised in the mid-1990s with a number of new units having state-of-

the-art facilities. Most of the old units were also revamped for effecting substantial

improvement in the quality of products, reducing cost and ensuring cleaner environment.

RSP was the first plant in India to incorporate LD technology of steel making. It is also

the first steel plant in SAIL and the only one presently where 100% of slabs are produced

through the cost-effective and quality-centeric continuous casting route.

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RSP presently has the capacity to produce 2 million tonnes of hot metal, 1.9 million

tonnes of crude steel and 1.67 million tonnes of saleable steel. It is SAIL’s only plant that

produce silicon steels for the power sector, high quality pipes for the oil & gas sector and

tin plates for the packaging industry. Its wide and sophisticated product range includes

various flat, tubular and coated products

Almost all major units of the plant, including its Personnel Department and Steel

Township, are certified to ISO:9001 standards. RSP’s Silicon Steel Mill, Sintering Plant

II, Environment Engineering Department, Plate Mill, Hot Strip Mill, ERW and SW Pipe

Plants, Special Plate Plant as well as Steel Township have been awarded ISO:14001

certification for Environment Management.

Location

Rourkela Steel Plant is located in the north-western tip of Orissa and at the heart of a rich

mineral belt. Being situated on the Howrah-Mumbai rail mainline, Rourkela is very well

connected with most of the important cities of India. The nearby airports are Ranchi (173

km), Bhubaneswar (378 km) and Kolkata (413 km). Rourkela also has an airstrip

maintained by RSP.

4.Bhilai Steel Plant (BSP) in Chhattisgarh

Nine - times winner of Prime Minister's Trophy for best Integrated Steel Plant in the

country, Bhilai Steel Plant (BSP) is India's sole producer of rails and heavy steel plates

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and major producer of structural. The plant is the sole supplier of the country's longest

rail tracks of 260 metres. With an annual production capacity of 3.153 MT of saleable

steel, the plant also specializes in other products such as wire rods and merchant

products. Since BSP is accredited with ISO 9001:2000 Quality Management System

Standard, all saleable products of Bhilai Steel Plant come under the ISO umbrella.

At Bhilai IS0:14001 has been awarded for Environment Management System in the

Plant, Township and Dalli Mines. It is the only steel plant to get certification in all these

areas. The Plant is accredited with SA: 8000 certification for social accountability and the

OHSAS-18001 certification for Occupational health and safety. These internationally

recognised certifications add value to Bhilai's products and helps create a place among

the best organisations in the steel industry. Among the long list of national awards it has

won, Bhilai has bagged the CII-ITC Sustainability award for three consecutive years. 

PRODUCT-MIX TONNES/ANNUM

Semis 5,33,000

Rail & Heavy Structural 7,50,000

MerchantProducts

(Angles, Channels, Round & TMT bars)5,00,000

Wire Rods (TMT, Plain & Ribbed) 4,20,000

Plates (up to 3600 mm wide) 9,50,000

Total Saleable steel 31,53,000

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SPECIAL STEEL PLANTS

1.Alloy Steel Plant (ASP) in West Bengal

2.Salem Steel Plant (SSP) in Tamil Nadu

3.Visvesvaraya Iron & Steel Plant (VISL) in Karnataka

SUBSIDIARIES

1.Indian Iron & Steel Company Limited (IISCO) in West Bengal

2.Maharashtra Electrosmelt Limited (MEL) in Maharashtra

OTHER UNITS

Raw Material Division (RMD) at Kolkata, West Bengal

Central Marketing Organization (CMO) at Kolkata, West Bengal

SAIL Consultancy Division (SAILCON) at New Delhi

Research & Development Centre for Iron & Steel (RDCIS) at Ranchi, Jharkhand

Centre for Engineering & Technology (CET) at Ranchi, Jharkhand

Management Training Institute (MTI) at Ranchi, Jharkhand

Central Power Training Institute (CPTI) at Rourkela, Orissa

SAIL Safety Organization (SSO) at Ranchi, Jharkhand

Environment Management Division (EMD) at Kolkata, West Bengal

Growth Division (GD) at Kolkata, West Bengal

Central Coal Supply Organization (CCSO) at Dhanbad, Jharkhand

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JOINT VENTURE:-

SAIL has promoted joint ventures in different areas ranging from power plants to

E-commerce.

North Bengal Dolomite Limited

A joint venture between SAIL and West Bengal Mineral DevelopmentCorporation ltd on

50:50 basis was formed for development of JayantiDolomite Deposit, Jalpaiguri for

supply of Dolomite to DSP and otherplants.

Romelt-SAIL (India) Ltd

Romelt Technology developed by Russia for reducing of iron bearingmaterials, which is

carried out with carbon in single A joint venture betweenSAIL, National Mineral

Development Corporation (NMDC) and Russianpromoters for marketing stage reactor

with the use of oxygen.

Bhilai JP Cement Ltd

SAIL has also incorporated a joint venture company with M/s JaiprakashAssociates Ltd

to set up a 2.2 MT cement plant at Bhilai. Likely tocommence operations by March'2010.

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SAIL-PRODUCTS

Hot rolled coils,sheets, and skelp

Hot rolled coils, sheets and skelp (narrow coil) are thelargest product category of the

companyin terms of both sales volume and revenue. Hot rolled coils are primarily used

for making pipes and have many direct industrial and manufacturing

applications, including the construction of tanks, railway cars, bicycle frames, ships,

engineering and military equipment and automobile and truck wheels, frames and body

parts. Hot rolled coils are also used as feedstock for cold rolling mills where

theyundergo further processing. Hot rolled coils are also delivered to the companys onw

cold rolling mills and silicon sheet mill and pipe plantin awide range of widths and

thicknesses as the feedstock for higher value -added steel products.The companyis the

largest producer of hot rolled coils, sheets and skelpin India

Semi Finished Products

The company produces semi-finished products, including blooms, billets and slabs,

which are convertedinto finished productsin the company’s processing plant and to

alesser extent, sold to re-rollers for conversion to finished products

Plates

Steel plates are used mainly for the manufacturer of bridges, steel structures, ships,large

diameter pipes, storage tanks, boilers, railway wagons and pressure vessels.The

companyis also produces weather proof steel plates for the construction of railcars.The

company currently the largest producer of steelplates in India w ith a domestic market

share of more than 80 per cent for these products.The companyis the only producer of

wide and heavy plate production in india

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Cols rolled Products

Cold rolling of hot rolled products produces a superior surface finish, improves the

physicalproperties of the steel, such as tensile strength, and reducesits thickness to

precise gauges. As a result, cold rolled products generally command higher prices than

hot rolled products.The products of the cold rolling mill include cold rolled sheets and

coils, which are used primarily for precision tubes, containers, bicycles, furniture and for

use by the automobileindustry to produce car body panels. Cold rolled products are also

used for further processing,including for colour coating, galvaniing and tinning. The

company also produces further processed cold rolled products,including galvanied

sheets and tin plates.

Railway Products

Railway productsincluding rails, wheels and axles, sleeper and fish plates (which are used to connect and strengthen rails) are produced through a process of hot rolling bloomsin the finishing mills and forgingingots and bloomsin the finishing mills and forgingingots and bloomsin the forging press or hammer. Railway products are used primarily to upgrade and expand the existing railway networking India.

Bars and RodsThe company produces steel bars and rods through a process of hot rolling billets in the finishing mills. Reinforcement steel and wire rods are primarily used by the construction industry. The company is one of the largest producers of reinforcement bars in India which are primarily sold to the construction industry

SAIL – INTO THE FUTURE

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Modernisation & Expansion

SAIL, is in the process of modernizing and expanding its production units, raw material

resources and other facilities to maintain its dominant position in the Indian steel market.

The objective is to achieve a production capacity of 26.2 MTPA of Hot Metal from the

base level production of 14.6 MTPA (2006-07 – Actual).

A new unit coming up at ISP

Orders for all major packages of ISP & SSP and part packages of BSL, BSP, RSP & DSP

Expansion have been placed and these packages are in various stages of implementation

Objective of Expansion Plan

100% production of steel through Basic Oxygen Furnace (BOF) route

100% processing of steel through continuous casting

Value addition by reduction of semi-finished steel

Auxiliary fuel injection system in all the Blast Furnaces

State-of-art process control computerization / automation

State-of-art online testing and quality control

Energy saving schemes

Secondary refining

Adherence to environment norms

Production Target

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The production target of hot metal, crude steel and saleable steel after Expansion is

indicated below:

(Million tonne per annum)

Item

Base Case

(2006-07)

Actual

After Expansion

Hot Metal 14.6 26.2 (23.5)

Crude Steel 13.5 24.6 (21.4)

Saleable Steel 12.6 23.1 (20.2)

Figures in bracket indicate capacity after implementation of ongoing phase of

modernisation and expansion to be completed by 2012-2013

Capital ExpenditureAmount spent on Expansion Plan and other Capital Schemes of

SAIL (incl. subsidiary) during last 3 years are as follows:

Year Total (Rs./Crore)

2007-08 2181

2008-09 5233

2009-10 10606

VISION

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“To be a respected world class corporation and the leader in Indian steel business in

quality, productivity, profitability and customer satisfaction”

CREDO

We build lasting relationships with customers based on trust and mutual benefit

We uphold highest ethical standards in conduct of our business.

We create and nurture a culture that supports flexibility, learning and is proactive to

change

We chart a challenging career for employees with opportunities for advancement and

rewards.

We value the opportunity and responsibility to make a meaningful difference in people's

lives.

SAIL - MARKETING

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Functions of marketing Department

1. To monitor the orders issued by CMO, So that these orders can fulfilled in time.

2.Put pressure on CMO, to get orders for an underutilized mill.

3.To sell all the secondary products directly i.e. directly by BSL and by CMO.

4. On day to day basis it takes care of the dispatches i.e. daily dispatch are checked.

Policies of Marketing

Marketing Planning has responsible function in the working of marketing

department. All the risky developments, taking out solution to cripple

`situations, this section carries out product pricing and related activities, some of the

programmes, policies and procedures are as follows:-

I) Positioning the product a value based place in customer mind.

II) Finalize annual sales plan and quantity, monthly, weekly, and daily rolling programme

of Rolling mills in consultation with CMO and mills. This planis based on the sales

forecast receive from JPU SPL/ Iron and steel controller.

III)Optimizing the product-mix by proper utilization of available stocks.

IV)Receiving Enquiries and complaints, cancellation of orders etc.

V)Coordinating the works of mills and traffic department so as to maximize dispatches.

VI)Co-ordinations with CMO from stages of enquiry, for exports, development of new

Profiles, sections, modification of product scheduling till the orders are completed.

VII)Development of new qualities of steel

VIII)Periodical market surveys of products to analyze the market position

SAIL-STEEL EXPORTS

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International Trade Division

International Trade Division (ITD) of SAIL at New Delhi – an ISO 9001:2000 accredited

unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAIL’s five

integrated steel plants. Ever ready to meet the exacting demands of its global customers,

ITD maintains a close liaison with customers and the production units to cater to the

customized requirements of its customers both in terms of quality and sizes.

SAIL’s product basket includes products such as Rails, Structurals, Merchant Products,

Wire Rods, Re-bars, Plate Mill Plates, Hot Rolled Coils, Hot Rolled Plates / Sheets, Cold

Rolled steels, Galvanised steels, Cold Rolled Non Oriented (CRNO) coils, Chequered

Plates, Slabs, Billets and Pig Iron besides cut-to-size Hot Rolled And Cold Rolled

materials through its Joint Venture Service Centre. Our major products are also covered

by stringent certifications such as CE marking, TUV and ‘U’ mark required by

sophisticated end uses in European markets.

ITD has successfully established SAIL’s brand name globally. Among the notable

destinations for SAIL products are Japan, P.R. of China, Korea, Taiwan, Vietnam,

Philippines, Singapore, Malaysia, Thailand, Indonesia, Australia, Mexico, Europe (UK,

Germany, France, Belgium, Italy, Spain, Netherlands, Portugal), Sudan, Oman, UAE and

the neighbouring countries such as Myanmar, Bangladesh, Sri Lanka and Nepal. The

critical function of ensuring efficient shipment of export materials is performed by

Transport & Shipping Division (T&S) Headquartered at Kolkata. T&S has branch offices

at Haldia, Paradip and Vizag ports

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SAIL - REACHING OUT TO GLOBAL MARKETS

Steel Authority of India Limited (SAIL) is India’s largest steelmaker and one of the

world’s leading steel producer with an annual turnover of Rs 45, 555 crore in 07-08.

Annually it produces over 12 million tonnes of various steel products, to meet the

exacting requirements of both domestic as well as overseas customers. Its vision for the

future, encompasses a presence in major markets of the world

Being a manufacturer of world-class steel products, SAIL offers to its customers a wide

product profile matched with excellent service, and a choice ranging from widely traded

items like Hot Rolled Coils to specialty products like CRNO steel

SAIL’s products have found ready acceptance in about 75 countries the world over.

Products exported to various countries include Mild Steel Billets, Slabs, Wire rods,

Structurals, Hot-rolled Plates/Coils/Sheets, Cold-rolled Coils/Sheets, Rails, CRNO Steels

and Pig Iron. SAIL’s Mild Steel and Pig Iron exports are undertaken by its International

Trade Division (ITD) based in New Delhi

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PERFORMANCE APPRAISAL OF SAIL

Almost every organization in one way or another goes through a periodic ritual, formally

or informally, known as performance appraisal. The formal performance appraisal has

been called a tool of management, a control process, an activity and a critical element in

human resources allocation. Uses for performance appraisal have included equal

employment opportunity considerations, promotions, transfer and salary increases.

Primarily performance appraisal has been considered an overall system for controlling an

organization. Performance appraisal has also been called an audit function of an

organization regarding the performance of individuals, groups and entire divisions.

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervisor, that usually takes the form of a periodic interview (annual or

semi-annual), in which the work performance

of the subordinate is examined and discussed, with a view to identifying weaknesses and

strengths as well as opportunities for improvement and skills development. Almost every

organization in one way or another goes through a periodic ritual, formally or informally,

known as performance appraisal.Performance appraisal has been called many things. The

formal performance appraisal has been called a tool of management, a control process, an

activity and a critical element in human resources allocation. Uses for performance

appraisal have included equal employment opportunity considerations, promotions,

transfer and salary increases. Primarily performance appraisal has been considered an

overall system for controlling an organization. Performance appraisal has also been called

an audit function of an organization regarding the performance of individuals, groups and

entire divisions.

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CONCLUSION

Throughout this term paper I find the details about steel authority of India limited(SAIL)

and about Steel production, Growth,retail and all about the imports and exports.SAIL is

the leading steel-making company in India and it produce steel in large quantity for

domestic construction, engineering, power, railway, automotive and defense uses

Government also set the policies for this limited authority.It Builds a large

amount of steel production with all its itegrated Units like wise Bokaro Steel Plant (BSL)

in Jharkhand, .Durgapur Steel Plant (DSP) in West Bengal, .Rourkela Steel Plant (RSP)

in Orissa, and Bhilai Steel Plant (BSP) in Chhattisgarh.It also link up with some joint

ventures.

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BIBLIOGRAPHY

Books referred:-

Kotler Philip,Keller Kelvin,Koshy Abraham,Jha Mithileshwar;

Company profile

www.sail.co.inwww.metaljunction.com

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