intrnship report on kalyani steels ltd

Organization study

EXECUTIVE SUMMARY

M/s Kalyani Steels Limited (Pig Iron Division Siruguppa) are running a pig iron

industry situated at Honnarhalli village, Siruguppa taluk, Bellary district. Originally,

this industry was established during November 1994 by M/s Uni-Metal Is pat Ltd and

since 01-11-1997 it was closed. On 23-11-2004, this industry was sold to M/s Shree

Ram Electro cast Pvt. Ltd. Subsequently, on 21-04-2005 the industry was leased to M/s

Kalyani Steels Limited (KSL) and since then the industry is running continuously. The

industry has an installed capacity of 90000 TPA pig iron. However, the Consent for

Operation from KSPCB was obtained for the production of 60 000 TPA pig iron. M/s

Kalyani Steel Limited is an Indian company with worldwide refutation in steel and

alloy steel manufacture. Considering huge demand in the country, the company has

proposed to enhance the pig iron production capacity of the industry from 60 000 TPA

to 120 000 TPA. The production capacity will be enhanced mainly by full utilization of

the existing surplus plant capacity and up gradation of process technology. The

expansion does not involve procurement of additional land or construction of additional

buildings. The capital investment (Gross Block) of the industry for exist capacity is Rs.

2640 Lakhs. Additional investment needed for enhancement of capacity is about Rs. 60

Lakhs.

1Govt. R.C. College of Commerce & Management

Organization study

TITLE OF THE STUDY:-

An Organization study at KALYANI STEELS LTD, HONNARHALLI,

SIRUGUPPA (TQ), BELLARY (DST).

INTROUCTION OF THE STUDY

Practical exposure

It gives a exposure to researcher. It nurtures us to what is going on real corporate and

gives a firsthand experience in real corporate world.

Industry Exposure

It exposure the student to know how the industry work.

It also helps to understand function of each department.

Presentation Skills

Project helps in improving the presentation student.

It helps the student improve their confidence and also their communication skills.

Field work

It gives the opportunity to go the field to learn and collect data and learn about

organization.


Organization study

OBJECTIVES OF THE STUDY:-

To gain the first had practical knowledge of the overall functions of the

organization in terms of various functional departments.

To learn about the present situation and performing of the company.

To relate the classroom theories practically and analyze them to have a view of

problems faced by the organization and to help them by suggestions to

understand the problems of various functional departments of the organizations.

To satisfy the requirements for the partial fulfillment of the post Graduate degree

of master of business administration as per the syllabus of Bangalore University.

SCOPE OF THE STUDY:-

Useful to students to know the working setup in the organization.

The study will help us to know the overall functioning of the organization in

detail.

It also provides a wide scope to improve the knowledge of the study undertaking

the project in practical aspect.


Organization study

METHODOLOGY OF STUDY:-

The required information and data was assimilated through two sources:

PRIMARY DATA:-

By observing the various departments of the organization.

By interacting with various employees working in the company (interview).

SECONDARY DATA:-

From the company manual.

From the journals and management books.

Brochures and records of the organization.

Internet.


Organization study

LIMITATIONS OF THE STUDY:-

The study is for a short duration and hence all the aspects of all the departments

were not covered.

The study is limited to the organizational structure and brief details of all

the departments. Technical details are not covered, only a brief outline available

from the secondary data is reported.

There has been limited access to the annual reports of the company.

It is my sincere hope that in spite of all limitations, the reader finds this report

comprehensive, interesting and informative. I hope that this report serves the

purpose efficiently and meaningfully for which it has been intended.


Organization study

INDUSTRY PROFILE:-

India is gifted with large quantity of iron ore with high Ferrous content, which

is the crucial raw material for producing the steel. Hence India is one of the largest

producers of steel in the world.

With the help of liberalization, globalization of economy in the process, there

is a scope for economic development, which means there will be focus on

infrastructure. This will lead to considerable demand for steel. As its main applications

are in the construction, engineering and automobile sectors, which are the key elements

in building infrastructure steel in universal intermediate and has very strong forward

and backward linkages hence steel industry has become one of the core sector of the

economy.

Though India one of the large steel producers. It has low percepts

consumption of steel in comparison with order developing and developed countries. As

steel is on the rise we can expect good rise in consumption.

India is fortunate in having intensive iron ore deposits with reserves estimated

at 10.3 billion which is more than 1/4th of the world reserves. Further the average iron

ore content of Indian ore is above 60% in India, the iron ore reserves are mainly found

in the states Orissa, Karnataka, Bihar, MP, Goa, A.P., Rajasthan and sum parts of

western Maharashtra.

When we think of the Industry steel , the first thing that comes in to mind us

pig iron. This is because of its name. To put in to simple words, when metal from blast


Organization study

furnace is paired in to Moulds and solidifies it assumes a shape which resembles the

back of a pig. Hence name pig iron.

GLOBAL SCENARIO OF PIG IRON:-

The demand for the international has a sharp rise, the total production of pig

iron. It is estimated at 500 mt. Developed nation accounts for 45% of the total

production seeing the potential demand many mills in USA such as a Nucor, Norigstar,

Steel and Max steel are switching over to pig iron production.

INDIAN STEEL SCENARIO:-

The Indian steel industry's onward journey in the recent times has been a

cause of great pride to all of us. The last two years have seen the deregulated Indian

steel industry performing at its peak level in almost all spheres. Steel production went

up by 8 per cent to reach a level of 33 million tons in 2005-06 from 32 million tons

recorded a year before. The domestic demand for steel also registered a growth rate of 6

per cent and grew from 27 million tons in 2005-06 to 29 million tons in 2005-06. The

most spectacular achievement has, however, been recorded in export performance. The

Exports of finished steel from India increased to a modern and globally-integrated

industry in an astonishingly short span Indian steel industry's onward journey in the

recent times has been the a cause of great pride to by 37 per cent and from 2.7 million

tons to 3.7 million/tons.

In addition, significant improvement was noted in the exports of semi-finished steel,

stainless steel and pig iron. All these favorable trends have been reflected in the

improved profitability of the major steel makers in both the public and the private


Organization study

sectors. The biggest success story has been that of TISCO, which has recorded an

increase of 391 per cent in its profits during this fiscal year compared to the previous y

ESSAR's balance-sheet has been in the black after a long time, while other major

steel makers have reduced their losses significantly. The fact that such an improvement

has come at a time of intense global competition and a worrisome proliferation of non-

tariff barriers in the developed world, speaks volumes about the resilience, the

innovativeness and, above all, the competitive spirit of the Indian exporters of steel.

The dexterity, with which the Indian exporters diversified their destination markets,

modified the composition of their export basket to suit the changing global demand

profile, affected sizable reduction in production costs and adoption of state-of-the-art

technologies provides sample testimony to the maturity of this industry.

From a highly protected inward-looking industry of .the pre-liberalization years

it has matured into a modern and globally-integrated industry in an astonishingly short

span of time.

GROWTH TREND OF PIG IRON SECTOR IN INDIA:-

Before liberalization the pig iron industry was monopolized by the integral

steel plants to utilize the liberalization policy initiated by the Government. Decline the

pig iron production and paved the way of helping the ISP’s be utilize pig iron for

making steel to gain value addition.

The integrated steel plant (ISP), is the major supplier of pig iron. Public sector (ISP)

Contributes up to 90% of the pig iron supply. According to the steel ministry report

demand for pig iron is estimated to increase by a whopping 37% over next 8 years.


Organization study

Demand & availability of pig iron (units 000)

Years Demand Availability

1996-97 2400 3224

1997-98 2900 3469

1998-99 2700 3733

1999-00 2900 4016

2000-01 3100 4322

2001-02 3300 4650

2002-03 3600 4900

2003-04 3800 5750

2004-05 4100 5233

2005-06 4400 5474


Organization study

Pig iron is the basic input for making iron casting which finds its application

in steel industry & other sectors of the economy. It can also be used in the change

mix of the electrical are furnaces (EAFs) as a partial substitute of melting scrap. Pig

iron mainly classified into tow glades.

Basic glade (which is used for making steel/)

Foundry glade (which is used of manufacturing iron casting)

S.g glade (which is used of manufacturing special steel)

ROLE:-

In the changed policy environment based on the tenets of economic

liberalization and global integration, the role of the Ministry of Steel has also changed

significantly. In the post-deregulation years, the Ministry has seen a significant

expansion in its role as a nodal agency for facilitating the process of transformation of


Organization study

this pioneering Indian industry with a history dating back to the beginning of the last

century.

The Ministry of Steel has directed its efforts towards fostering the growth of

this industry based on the principles of competitiveness and economic efficiency. At the

same time, much of its efforts have also been directed at curbing unfair competition

from domestic and overseas sources. Similarly, it has also made efforts to help the

industry in overcoming the structural rigidities, the scarcities of essential inputs,

infrastructure-related constraints and other market-distorting forces commonly

experienced by the developing countries in the course of industrialization

COMPANY PROFILE

KALYANI STEELS LTD

[Better Steel Through, Better Technology]

Kalyani Steels Ltd, is a part of the over $2.1 billion Kalyani Group.

Established in 1973, Kalyani Steels Ltd is a leading manufacturer of forging and

engineering quality carbon & alloy steels using the Blast Furnace route.

With its corporate headquarters in Pune, Kalyani Steels Ltd. was set up to

fulfill the in-house requirements of forging quality steel of the Kalyani Group

In 1997, the Kalyani Group set up a new plant to manufacture steel using the

less power intensive mini-blast furnace route. The new facility is at Ginigera in the

Hospet - Bellary region of Karnataka state, where iron ore is abundantly available. This


Organization study

integrated steel complex has capacity of 400,000 tpa of carbon and alloy steels, which

is being expanded to 650,000 tpa.

Over the years, Kalyani Steels has been continuously upgrading its technology

and infrastructure. The facilities at KSL are at par with any sophisticated steel

manufacturers in the world

Although the forging industry in India is the primary market for the

company’s products, markets of various components for commercial vehicles, two

wheelers, diesel engines, bearings, tractors, turbines and rail also form a substantial part

of the company’s clientele. KSL has earned the status of preferred steel supplier for

engineering, automotive, seamless tube and primary aluminum industry.

B.N.KALYANI:- GROUP CHAIRMAN


Organization study

Mr B N Kalyani, Chairman of the USD 2.4 Billion, Kalyani Group is the

principal driving force behind the growth and success of the Kalyani Group of

Companies.

An able entrepreneur and technocrat, Mr Kalyani has enriched the group with his

vision of sound business governance and value driven management practices. He is the

driving force behind the company's vision, products, market direction, and company's

spirit & commitment to superior quality. While he has been instrumental in elevating

the company to new heights, he is responsible for the company's strategic planning,

policies & corporate directions.


Organization study

He also inspires the company's unique culture by promoting core values that

focus on people, customers, innovation, quality, integrity, fun, and profitability.

With a business experience of more than 27 years, Mr. Kalyani has set the group

on its growth path and is credited with the extraordinary vision for its entry into the fast

emerging infrastructure development arena in India.

Born on 7th January 1949, Mr. Kalyani is an Engineering Graduate from the

Birla Institute of Technology, Pilani, and post graduate from the Massachusetts Institute

of Technology, USA.

Mr. Kalyani is Member of key Government Committees that include National

Manufacturing Competitiveness Council; Board of Trade; and Development Council

for Automobile and Allied Industries. He is the Member of the National Council of

Confederation of Indian Industries; Chairman, Board of Governors, IIM Indore; and

Chairman, Board of Governors, SGGS College of Engineering & Technology, Nanded.

He is member of World Economic Forum, Switzerland; Commonwealth Business

Council, UK; and India-US CEO's Forum.

Mr Kalyani is associated with the Indian Education Initiative and has founded

Pratham Pune Education Foundation, an NGO that provides primary education for

underprivileged children.


Organization study

In 2004 Mr Kalyani was awarded "CEO of the Year" by the prestigious Business

Standard newspaper. In 2005 he was recipient of "Entrepreneur of the Year

(Manufacturing)" Award from Earnst & Young. In February 2006, The Jagatik Marathi

Chamber Of Commerce and Industry honored him with their "Global Entrepreneur of

the Year" Award. On 9th April 2006 Mr Kalyani was awarded "Rashtrabhushan" award

by FIE Foundation for outstanding contribution in Industrial Globalization.

The Symbiosis International University, Pune has accorded Mr B N Kalyani with

'the doctorate title' recognizing his invaluable service to the nation in putting the Indian

Manufacturing industry on the Global Map. The IIMM has conferred him with the CEO

of the Year Award 2006 for his outstanding achievements and contribution to Business,

Industry, Society and to the Materials Management Profession at large.

Mr Kalyani was recently honoured with Business India’s “Businessman of the

Year Award for 2006.

KALYANI GROUP:-

The Kalyani Group is one of the leading Industrial Houses in India, having

diverse business interests in Engineering Steel, Forgings, Auto Components, Non

Conventional Energy & Speciality Chemicals. The Group’s Annual Turnover is over

USD 2.4 billion and has joint ventures with some of the world leaders such as

ArvinMeritor, USA, Carpenter Technology Corporation, USA, Hayes Lemmerz, USA,

FAWCorporation,China,etc.


Organization study

Bharat Forge Limited, the flagship company of the group is the second

largest forging company in the world a nd the largest domestic player with a share of

80% in axle components and engine components.


http://www.bharatforge.com/

http://www.autoaxle.com/

http://www.kalyanisteels.com/

http://www.kenersys.com/

http://www.bfutilities.com/

Organization study

The Kalyani Group operates in four different business areas. The chart below illustrates

how, in percentage terms, the Kalyani Group companies in each of these areas contribute to the

overall makeup of the group. The table that follows shows the group's financial performance

for the last


http://www.kalyanicarpenter.com/

http://www.kalyanigroup.com/kalyani_lemmerz.asp

http://www.hikal.com/

http://www.kalyanithermal.com/

http://www.kalyaniinfotech.com/

http://www.epicentertechnology.com/

http://www.synise.com/

Organization study

Our success has been founded on a clear vision of leveraging our core

competencies to maximum effect and this has been a feature of our impressive growth


Organization study

for some years. Our growth and the significant changes we have seen in our businesses

have relied on our ability to manage the process of change in a proactive way and has

been a direct result of our ability to recognize and enhance our strengths.

Careful targeting of prospective partners is a core ingredient, but it is our ability

to realize the potential locked-up in alliances, which has contributed to our success.

A common foundation for all our businesses has been building mutually

beneficial relationships with our partners and customers and this features in all areas of

our business. Our clear aim is to forge long-term, profitable alliances, be it with

partners or customers.

Growth is one of the leading management challenges for corporations. Our goal is

to dominate each and every segment of the market where we operate. The Group's low

key, but focused style of management has earned the company recognition amidst

investors, employees, vendors and customers, as also worldwide recognition.

The growth of the Group through the years has been influenced by a number

of factors:

Focus on core businesses, to maximize immediate growth potential

Aggressive cost savings programs

Expand geographically to build global capability and leading positions

External growth through acquisitions

VISION:-


Organization study

Kalyani Steels sees itself as a GLOBAL ONE-STOP SHOP for Automotive &

Engineering Steels.

A major gear shift to anticipate changing needs of user industries is the need of the

hour. The company is already producing newer grades in Micro-alloyed steel segment.

KSL intents to increase its product reach and range by continuous efforts on new

product development.

The company aims to augment its capacity to 1 million ton, while attaining self

sufficiency for major raw materials viz. Met Coke and Iron ore.

a. Coke: By adding coke oven batteries.

b. Iron Ore: By gaining controls on mining operations.

& economizing the operations by...

a. Generating power from flue gases of blast furnace/coke oven batteries.

b. Reduce material handling losses and freight costs by building railway sidings at

plants

Business strategy:-


Organization study

To attain market leadership in value added,

engineering steel segment

By

Constantly upgrading manufacturing technologies

&

adopting cost effective methods of steel making

thus

enchasing shareholder value.

MILESTONE:-

About Kalyani Steels Ltd (Pig Iron Division), Siruguppa:-


1973 Setting of KSL, Pune Facility

1997 Setting of Ginegera Plant

2004Setting up of Bharat NRE Coke, Dharwad

2005Commencing KSL, Siruguppa Operations

2005Commissioning of Captive Power Plant at Ginegera

2007 Acquisition of SJK Steel Plant, Tadipatri

Organization study

Year of establishment: November 1994

Sales turnover 2007-08: 10,000 tons

No. of employees: 386

Business area:-

Pig Iron

M/S KALYANI STEELS LIMITED (LESSEE)

(PIG IRON DIVISION)

(Operator and Producer)

M/s Shree Ram Electro Cast Pvt. Ltd (LESSOR) Kolkata

At: Honnarhalli, Post: Hatcholli, Taluk: Siruguppa, District: Bellary,

Karnataka State – 583 114

Registered Office,

Kalyani Steels Limited,

Mundhwa,

Pune - 411 036

INTRODUCTION


Organization study

PREAMBLE:-

M/s Kalyani Steels Limited (Pig Iron Division Siruguppa) are running

a pig iron industry situated at Honnarhalli village, Siruguppa taluk, Bellary district.

Originally, this industry was established during November 1994 by M/s Uni-Metal Is

pat Ltd and since 01-11-1997 it was closed. On 23-11-2004, this industry was sold to

M/s Shree Ram Electro cast Pvt. Ltd. Subsequently, on 21-04-2005 the industry was

leased to M/s Kalyani Steels Limited (KSL) and since then the industry is running

continuously. The industry has an installed capacity of 90000 TPA pig iron. However,

the Consent for Operation from KSPCB was obtained for the production of 60 000 TPA

pig iron. M/s Kalyani Steel Limited is an Indian company with worldwide refutation in

steel and alloy steel manufacture. Considering huge demand in the country, the

company has proposed to enhance the pig iron production capacity of the industry from

60 000 TPA to 120 000 TPA. The production capacity will be enhanced mainly by full

utilization of the existing surplus plant capacity and up gradation of process technology.

The expansion does not involve procurement of additional land or construction of

additional buildings. The capital investment (Gross Block) of the industry for exist

capacity is Rs. 2640 Lakhs. Additional investment needed for enhancement of capacity

is about Rs. 60 Lakhs.

NEED FOR THE EXPANSION:-


Organization study

Pig iron is basically used as a raw material in the production of cast

iron products, steel, alloy steel and cast iron. The iron/alloy and steel plants are the

essential for the growth of manufacturing and engineering industries, construction

activities and infrastructural development. Since 1998, the consumption of steel in the

country has increased by about 12 % per year. In view of the present encouraging

industrial and economic growth in the country, which is likely to continue in future,

M/s Kalyani Steels Limited has proposed to enhance the production capacity of its pig

iron plant at Siruguppa. Bellary region in Karnataka state is a potential zone for

establishment of iron and steel industries because of its accessibility to natural

resources including water and raw material like rich iron ore, dolomite, manganese ore

etc. Further, it helps to enhance the status of this underdeveloped rural area through

improvement in roads, communication, job opportunities and other infrastructural

facilities. The Government of Karnataka envisaged the policy to encourage iron and

steel industries in the state.

LOCATION DETAILS:-

The site is located adjacent to the district road joining Siruguppa and

Hatcholli village and is about 6 km from Hatcholli and 16 km from Siruguppa. The

nearest villages to the site are, Honnarhalli: 2km N, Chikkabellary: 3km NE,

Chigaragadde: 3 km E, Kurudahal : 4 km S and Hatcholi:6 km NE. The location is

basically rural and agrarian. Iron ore, the main raw material for pig iron is abundantly

available in Bellary district and other raw materials are also available from near by

places.

The perennial rivers Thungabhadra and Hagari are about 3 km WN and 5 km

SW from the site. The region has plain lands gradually sloping towards the rivers.


Organization study

Paddy is the main crop with sugar cane, sun flower, chilli are the other crops. Rice mill

is the only industrial activity in the region and these are located (24 Nos) located at

Siruguppa town and surrounding region. Environmental sensitive locations such as

archeological structures, protected forests etc. are not present. However, rivers

including Tungabhadra and Hagari are flowing in the study area.

DESCRIPTION OF ENVIRONMENT:-

Base line environmental data were collected primary and secondary

sources for the study area 10 km region from the site. The environmental parameters

studied were weather, air, water, soil, ecology and socio-economical status. The region

experiences tropical climate with hot summer and moderately cold winter. Monthly

mean of maximum temperature during summer and minimum temperature during

winter rises up to 41.2 0C and falls to 10.7 0C, respectively. Annual average relative

humility is about 65 %. Rain is received from SW monsoon (June-September) and N-E

monsoon (September-November). Average annual rain fall is 645 mm and most of the

precipitation occurs during May to November. Winds are moderate and predominant

wind speed are in the range of 2 to 19 km/hr. Major wind direction are W to E and E to

W. education status. Ambient air samples were collected from 10 different locations

within and outside the factory premise and tested for their quality. The quality of air in

the region appears to be within the CPCB standards for the rural and industrial area.

Surface water samples were collected from Tungabhadra and Hagari rivers and

groundwater samples were collected from 10 bore wells located in the region. Surface

Water is almost neutral and its salinity is low. However, it contains turbidity, suspended


Organization study

solids and coli form organisms. It is suitable for drinking after conventional treatment

and disinfection. TDS and total hard ness of ground water are moderate to high and

they are in the range of 680-1048 mg/l and 320- 526 mg/l, respectively. The quality of

bore well water in general is within the permissible limits for drinking and domestic

uses. Soil samples were collected from six different locations in the region and tested

for their quality. Soil in the region is clay loamy to sandy loam in structure.

Concentration of soluble salts & plant nutrients are moderate in all the soil samples.

The soil in general is suitable for agriculture.

The region is basically agrarian and crops cultivated are paddy, maize, sun

flower,Cotton and sugarcane. No forests or thick plantations in the region except the

Vegetation observed at the banks of river and streams. The region is relatively

backward with respect to education, communication and education status.

PROJECT DESCRIPTION:-

MANUFACTURING PROCESS:-

The raw materials iron ore, coke, limestone, dolomite, manganese ore and

quartz are charged into top of the furnace through conveyors. Atmospheric air is heated

in Metallic blast furnace and then blown into the bottom of the blast furnace. Raw

Materials descending from top of the furnace come in contact with hot air. The carbon

in coke reduces iron ore to molten Iron (hot metal). The hot metal is collected at the

bottom of the furnace. The impurities in the ore form slag. Slag being lighter floats on

the hot metal.

Hot metal and slag are removed separately from the furnace. The hot metal

after solidification is cooled in to iron castings by spraying with water. The pig iron


Organization study

castings are then transferred to finished product yard. The hot slag is cooled and

granulated into powder form by spraying with water. This slag along with water is

collected in atank.BF gas which comes out of the blast furnace contains suspended

solids. This is treated in an efficient gas cleaning unit consisting of dust catcher, two

stage venturi scrubber, saturator and dry cyclone separator. B.F gas contain good

amount of heat (600-700kcal/Nm3). The clean and cooled BF gas is then used as fuel in

metallic blast pre-heater and boiler.

RAW MATERIALS AND PRODUCTS

Pig iron is the product from the industry. Pig iron production capacity will be

increased from the existing 60000 TPA to 120000TPA.The raw materials are mainly

iron ore, coke and limestone. The requirement of these raw materials for the existing

capacity is 136 140 TPA, 46 680 TPA and 11 160 TPA, respectively. After

enhancement of capacity the requirement of raw materials will be doubled. The iron ore

mines are present in Bellary- Hospet region. Limestone is to be brought from Bagalkot

(approx. 200 km) by road. Coke is mostly imported and transported from nearest port

by road. Except coke, all other raw materials are locally available. Means of raw

material transportation is by road.

LAND UTILIZATION


Organization study

The total land area is 116A -17G acres. Out of this 38A -00G is the factory

premises covered with plant facilities and green belt. The balance of 78.17 acres is open

area around the factory premise. Production enhancement will be achieved in the

existing plant facilities and no additional is required for the purpose.

MAN POWER

Man power in the industry is 351. After enhancement of production the man

power will be increased to 386. More than 80 % of the manpower is recruited from the

local area.

POWER PLANT

The existing plant is already having a 2.5 M.W. power plant. The power

plant consists of high pressure boiler a turbo generator. Blast furnace gas is used as fuel

in the boiler. The existing power plant has adequate capacity to meet the power

requirement even after enhancement of the pig iron manufacturing capacity. The power

requirement of the industry is fully met from captive source. Only during the

emergency of power shortage from captive source, the power will be drawn from

KPTCL (950 KVA) or diesel generators (1250 KVA each – 2 Nos.).

WATER REQUIREMENT


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Water requirement to the industry is met from Tungabhadra River. The

fresh water Requirements to the industry for its present and expanded capacities is 862

m3/d and1157 m3/d, respectively. Government of Karnataka has sanctioned the

industry to draw24000 m3/d water from the river. The industry has constructed a water

reservoir of about 100 000 m3 capacity. This tank is filled up during rainy season.

During lean flow in the river water will not be drawn from the river. During such period

water from the reservoir will be utilized to meet water requirement in the industry.

ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

Pollution is likely to be caused mainly due to the discharge of waste products to

the environment. Waste products from the industry are,

i. Gaseous emissions from boiler and air pre-heater.

ii. Fugitive emission from solid handling points and vehicular movement

iii. Solid waste disposal

The environmental parameters such as air, water and land are likely to be affected by

the discharges of gaseous, liquid and solid wastes. The environmental impacts and their

mitigation measures are given below.

AIR ENVIRONMENT:-


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Blast furnace gases are used as fuel in boiler and air pre heater furnace. These

gases are contaminated with suspended particles and therefore cleaned in a gas cleaning

plant before being used as fuel. Flue gases from boiler and air pre-heater are vented

through stacks of adequate height. Flue gases contain pollutants such as SPM, SO2 and

NO2.The concentration pollutants in flue gases are within the permissible limits and

will not affect the air environment. Fugitive emissions are likely to be present at solid

handling locations such as loading and unloading points, solid storage yards and roads.

Water spraying and sprinkling is practiced at these locations to control fugitive

emissions in the industry.

WATER ENVIRONMENT:-

After enhancement of capacity a total of 1157 m3/d of water will be utilized in

the industry. A water reservoir of about 3 month’s capacity is constructed in the

industry for use in summer months. During lean season water will not be drawn from

the river. Water is used in the industry for cooling, quenching and dust suppression

applications. These water streams are totally re-circulated and only the makeup water is

added to the system. Water requirement is mainly to meet evaporation losses in cooling

water systems and dust suppression. There are no industrial effluents from the industry.

Domestic effluent (36 m3/d) from the industry is small in quantity. It is treated in septic

tank and discharged through soak pits.

SOLID WASTES:-

Solid wastes such as Iron ore fines, Coke fines, B. F. Slag, GCP Dust and GCP

Sludge are produced in the industry. These are sold to cement plants, sintering plants


Organization study

for their reuse. No solid wastes are disposed to environment. In view of the waste

management and pollution control measures as above the environment including air,

water or land environment is not affected by the activities of

the industry.

ENVIRONMENTAL MANAGEMENT PLAN:-

A comprehensive environmental management plan is adopted for the protection

of environment. In addition to pollution control the plan consists of following measures.

1. Environmental Cell under the chairmanship of Factory Manager is created in the

industry to plan and effectively manage the environmental activities.

2. Environmental Department is formed under environmental and safety officer to

implement the activities of environmental management plan. It has overall

responsibility of environmental protection and pollution control, including the

maintenance of pollution control facilities, laboratories, self monitoring and also to

maintain operational statutory records.

3. A monitoring system is established in the industry to test the quality of

environmental parameters such as air, water and noise on regular basis as indicated

below to ascertain pollution status within and around the plant.

4. Storm water gutters and storm water reservoir are constructed in the premise. Bunds

and soak pits are provided for harvesting of rain water.

5. Green belt and greenery is development in and around the factory premise.


Organization study

6. Roads in the premise are finished with paving and lining to avoid dust emission

7. Water spraying and sprinkling is practiced at loading and unloading points and solid

storage yards to control fugitive emissions in the industry.

8. Occupational safety and health care systems and emergency management plan are

followed in the industry.

PROJECT BENEFITS:-

1. The industry is established in backward region of the state. The presence of the

industry helps to develop road and transportation facilities in the region and also to

improve the economic status of this rural underdeveloped region.

2. After enhancement of capacity, more than 800 persons will be engaged in the factory

activities including direct and indirect employment in terms of factory employment,

transportation, vehicle maintenance, etc.

3. The industry has the potential to curtail the export of iron ore and utilize the same in

the country for production of steel. This will reduce the import of steel.

Thus the industry has the advantage to improve foreign exchange position and the

economic status of the country.

PRODUCT PROFILE

The Pig iron manufacturing unit (called as “Pig iron SBU” – Strategic Business

Unit). The process starts with the manufacture of pig iron. The pig iron division


Organization study

consists of 1 Mini blast furnace of 175 M3 working volume. The raw material for blast

furnaces (iron ore, Coke, quartzite, dolomite, manganese and Lime stone) are fed to the

furnace. The blowing system absorbs atmospheric air and blows it to the preheating

section at a pressure of 1.25 Kg/cm2 and a volume of approximately 35000 Nm3/hr. This

air is preheated in the preheated section to a temperature of 700 – 750oC. This hot high

pressure air is then blown into the furnace. The air is blow from bottom, while the raw

material is fed from top. Because of the hot air following in the counter flow direction,

reduction of iron ore takes place. The coke in the raw materials acts as the main fuel to

accelerate reduction of iron ore to iron in the form of liquid metal at 1500 oC. The

molten metal is then tapped out of the furnace and cast in the form of bricks called as

pig. This casting process is carried out in the pig casting machine, where the molten

metal is poured onto moulds and sprayed with water, for fas7ter solidification of iron.

Pig Iron

ORGANSATION CHART


VICE-PRESIDENT

Organization study

Functional Departments of the Company:-

a. Human resource Department.

b. Production Department


FINANCE MANAGER

PRODUCTION MANAGER

HR & ADM MANAGER

STORES MANAGER

PURCHASE MANAGER

MIS MANAGER

Q.C & PROCEES MANAGER

SAFETY MANAGER

Assistant

Manager

Accounts Officer

Sr. Supervisors

SupervisorsOfficer (Excise)Dispatch SupervisorsDispatch Assistants

Shift Engineers

Junior Engineers

Supervisors

Sr. Supervisors

Cast House

OperatorForeman

Sr. Chemist

Shift Chemist

Chemists

Junior Chemist

Trainee Chemist

Sampler

Junior Officers

Sr. Supervisors

Supervisors

Asst. Stores Keepers

Junior Clerks

Assistants

Data Entry Operators

Sr. AssistantsAssistants

Time Keepers

Purchase Engineers

Purchase Assistants

Research & Development

Junior Officer

Medical Assistants

Organization study

c. Quality Assurance Department.

d. Finance & Accounts Department

e. Management Information System Department.

f. Purchase Department.

g. Stores Department.

h. Safety department.

Human Resource Department:-

The Human resource Department is a part of the management function.

Primarily these departments will deal with human relationship within & outside the

organization and department will maintain ‘WE’ feeling in the organization and make

the employee/individual to contribute to the effective working of the undertaking. The


Organization study

Human resource Department will co-ordinate with all the departments to maintain a

harmonious industrial relationship in the industry.

The Human resource 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 organization’s goal. The management of human resource is more likely

to be known as “Human resource Management’.

The role of the Human resource management in an organization is more

valuable to achieve the organization’s goals. The Personal Department will conduct the

advanced technical training to develop the employee’s skills at the works.

DEPARTMENT STRUCTURE OF FINANCE :-


Organization study

Vicekk

Core responsibilities of HR & Administration

1. Recruitment and selection:-

Analyzing the human resource requirement for the different projects, in co-ordination with the project managers.


Vice-President

HR&Admn Manager

Time Keepers AsstSenior Asst

Organization study

Co-ordinate and set up the team for technical interviews.

Conducting initial HR interview rounds with the candidate and issue offers to the short listed/ selected candidates.

Suggesting an appropriate salary by referring to the salary bands and consulting with the concerned manager and top management.

Carrying out reference checks for each candidate and immediately raising a concerned to the manager (if any)

2. Induction:-

Ensuring the completion of joining formalities.

Giving new employees a presentation on the company, orientation and basic office information.

Maintaining employee data.

3. Training and Development:-

Collection of tech/non tech training needs and sending the information to the management.

Preparing the training Plan and Budget.


Organization study

Setting up a team of house trainers.

Organizing and felicitating the training.

4. Employee Relation.

Clarifying the employee’s queries about the HR policies.

Creating a HR manual/ Policies/Fitment-Increment.

Understanding employees concerns, escalating to appropriate levels and ensuring resolution of the concerns.

5. Appraisal Process:-

Initializing the appraisal at different intervals for different employees in conjunction with concerned managers.

Clarification and Co-ordination for smooth flow of the process.

Exit interviews: - Conduct one to one discussions with separate employee to find the issues. This would lead to the separation. Provide appropriate feed back to concerned person of the concerns emerging from the exit interaction.

6. Employee MIS:-

Maintaining employee master data.

Preparing joining, Head count, attrition MIS.


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Provide compensation details to the accounts department for salary processing.

Should be responsible for training and managing staff activities (Projects, internships and etc).

Office administration.

Handling the PR activities. Interacting with the villagers and land losers.

7. Payroll and Compensation Benefits & Statutory:-

Processing of payroll every month.

Updating of new joiners/ full and final settlements.

Maintain and prepare the standard of salary structure, track all the details of salary and prepare MIS report.

Track leave records on daily basis and monthly basis.

8. Administration and Time office:-

Attendance / Muster Roll.

Front office administration.


Organization study

Vehicle management, Guesthouse security Etc.

Superannuating & P.F:-

The employees in the grade of engineers and are covered under the

superannuating scheme. All the employees are covered by P.F.

Communication:- The telephone exchange of the company works round the clock. The senior

officers and essential service engineers are provide with phones and mobile phones to

communicate effectively.

Canteen facility:-

The company has provided canteen facility to its employee and contract workers.

Tea, coffee, breakfast, lunch, &dinner is provided for the employees at concessional

rates. In case of the spot wherever necessary. In night shift, tea coffee & buns are

provided.

Leave Facility/Holidays:-

All employees are entitled for a weekly off and are eligible for 9 paid holidays

and 1 restricted holiday in a calendar year. They are also eligible for 24 days earned

leaves & 8 days casual leaves in a calendar year.


Organization study

Attendance and Identity card:-

Every employee of the company is provided with an identity card and daily the

attendance also taken.

Gate pass for Official/ Personal work:-

Every employee of the company will have to submit gate pass for official/

personal work going out of the factory.

Salary Payments:-

Salary is paid to all the employees normally by seventh day of every month and

through syndicate and State Bank of Mysore.

LTC:-

LTC amount is paid to the eligible employees once in a year normally along with

the salary payable for the month of April. An employee will be eligible for LTC only

after completion of one year of service.

Discipline:-

All employees are governed by Certified Standing Order of the Company and

also as per terms of their appointment letter. The Certified Standing Order of the

company has been displayed on notice board & also available at Human Resources

Development for ready reference.


Organization study

Safety:-

The safety department conducts safety training programs for employees and gives

the guidance regarding do’s 7 don’ts

.

Annual Appraisal System:-

The company has annual appraisal system. The employees joining the duties

between January & June get their increment in April and the employees between July &

December get their increment in October subjected to satisfactory performance. The

increment is given only after completion of one year service. Promotions are also given

in the deserving cases. Promotion cannot be claimed as a matter of right and it is a

prerogative of the management.

Retirement:-

The age of retirement is 58 years, in case of permanent employees.

Resignation/ Separation:-

One month’s notice, as the case may be, as specified in the appointment letter

or payment in lieu of notice will be necessary for termination of service from either

side.

TIME OFFICE

It is a branch of Human resource Department. Time office is a key to Human

resource 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.


Organization study

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 Human resource department. The employees shall bear the entire cost of

reassurance, discharge retirement etc., the employee shall return the badge to the

issuing authority.

The employee should produce the Identity Badge to.

To watch and ward staff when entering.

To the wages / salary disbursement clerk, cashier or any other officer of the

company while receiving wages/salary and allowances or

On demand by an officer of the company.

Any employee who is found to have entered the company premises without

badge, issued to him will be liable to be sent out and will be treated as

absent.

Production Department:-


Organization study

The vision of the Kalyani Group is to be recognized globally as leaders through

engineering excellence, providing diverse skills to all its existing and emerging

businesses. It is our mission to provide responsive, valued and critical manufacturing

technologies and engineering expertise in support of worldwide goals.

Our objectives are to meet/exceed customer expectations, utilize the best

applicable technology, and continuously improve our overall effectiveness as a high-

performance, learning-based operation.

For more than 35 years, Manufacturing Technology Strategies have been leading

the way in helping corporations of all shapes and sizes improve their efficiencies and

bottom line. We help our managers in manufacturing plants achieve their business goals

through technology and people development.

Today's ultra-competitive automotive marketplace demands superior product,

process and technology. It requires people with in-depth technical know-how and a

spirit of innovation. The results are world-leading processes, components, and continual

increase in manufacturing efficiency and productivity.

Bharat Forge Ltd., the flagship company of the Kalyani Group is the largest

forging company in Asia and one of the three largest and most technologically

advanced commercial forge shops in the world. BFL has been leveraging technology in


Organization study

its endeavor to transform itself into a world class manufacturing company. It has, over

the years, been investing in technology to enhance efficiencies, production quality and

design capabilities. IT tools are being used extensively for product development,

compressing production and product development time, supply chain management and

product marketing.

Our objective is to eliminate all non-value added processes, thereby reducing

cycle times in all facets of our business.

Our world class manufacturing is supported by corporate research including

R&D, engineering support, advanced metallurgical analysis, and cutting edge testing

facilities. This support structure, coupled with outstanding manufacturing capabilities,

allows us to consistently provide our customers with the highest quality products and

ensure our world-class status in this global marketplace.

Our ability to penetrate foreign markets and increase global clients reflects the

company’s high technological capabilities.


Organization study


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Organization study

OBJECTIVES OF PRODUCTION DEPARTMENT:-

Keep constant HBT – 750oC.

Avoid break –down/Blast- leakage.

Reduce consumable cast.

Optimum utilization of F/C & M.C.

Reduce coke rate.

Maintain minimum power cost/unit.

Co/co2 Ratio =1.15 to 1.20.

Reduce the skull generation in PCM & cast house.

Improve Hot-metal yield.

Give PCM for maintain in every shift.

Co-ordinate with others department.

Keep housekeeping.

MANUFACTURING PROCESS:-


Organization study

The raw materials iron ore, coke, limestone, dolomite, manganese ore and quartz

are charged into top of the furnace through conveyors. Atmospheric air is heated in

metallic blast furnace and then blown into the bottom of the blast furnace. Raw

materials descending from top of the furnace come in contact with hot air. The carbon

in coke reduces iron ore to molten Iron (hot metal). The hot metal is collected at the

bottom of the furnace. The impurities in the ore form slag. Slag being lighter floats on

the hot metal.

Hot metal and slag are removed separately from the furnace. The hot metal after

Solidification is cooled in to iron castings by spraying with water. The pig iron castings

are then transferred to finished product yard. The hot slag is cooled and granulated into

powder form by spraying with water. This slag along with water is collected in a tank.

BF gas which comes out of the blast furnace contains suspended solids. This is treated

in an efficient gas cleaning unit consisting of dust catcher, two stage venturi scrubber,

saturator and dry cyclone separator.

B.F gas contain good amount of heat (600-700kcal/Nm3). The clean and cooled

BF gas is then used as fuel in metallic blast pre-heater and boiler.

PRODUCTION FUNCTION:-


Organization study

Equipment processes personnel are qualified to perform the required operation’s

respective department reports qualified records objectives evidence of conformance to

specified requirements.

Product identification traceability:-

Purpose: to provide guidelines for establishment procedure fir identifying the

product by suitable meson’s respect during stages of production to delivery.

Method: pig iron:-

Incoming raw materials shall be identified by location marked for supplier wise

storage other materials are identified by any of the following means tag location for

storage point marks pencils marks name plates boards sticker.

Quality system :-

To provide guidelines to establish. Document & maintaining a quality a means

to ensure that product conformance to requirements. To outline structure of

documentation in quality systems. Trade line document the quality planning is done to

meet the requirements of product.


Organization study

Method

Quality assurance manual (QAM)

The top ties document prepared primarily conveying the organization

commitment to quality & maximizing customer satisfaction

Common procedure manual (CPM)

This is second ties document prepared by Mr Issues these to all department

heads for common procedure.

Divisional procedure manual.(DPM)

This is also second ties document prepared by divisional heads dealing how a job

is done with responsibility specified department procedure of HRM & TRG are

prepared by respective department heads.

Work instruction

This is third ties document primary to operate with specify work details there are

generally issued by document or sectional heads & when required they translated in

vernacular language (Kannada).


Organization study

Forms/ formats

Standards check seats supporting documents etc these are primarily designed by

departments taking into consideration the procedures/ work instruction details.

Pig Iron :

The specifications of the various grades of Pig Iron produced at KFIL are as

follows:-

PIG IRON GRADES

Carbon (%) Silicon (%) Manganese (%)

Sulphur (%) Phosphorous (%)

Foundry Grade

3.80 – 4.20 3.80 – 4.20 3.80 – 4.20

2.00 – 2.50 1.80 – 1.99 1.51 – 1.79

0 50 – 0.90 0.50 – 0.90 0.50 – 0.90

0.06 Max .06 Max 0.06 Max

0.09 Max 0.09 Max 0.09 Max

Basic Grade 3.80 – 4.20 3.80 – 4.20 3.80 – 4.20

<1.00 1.00– 1.25 1.26 – 1.50

0.40 – 0.80 0.40 – 0.80 0.40 – 0.80

0.08 Max 0.08 Max 0.80 Max

0.09 Max 0.09 Max 0.09 Max


Organization study

Quality Assurance Department:-

"Excellence Through Quality" is the Group's philosophy, while low cost and

competitiveness in the domestic and export markets are a part of the Kalyani Group

Strategy.

The Kalyani Group is committed to continual improvement of product, process

and service, with the ultimate goal of total customer satisfaction. The Quality Systems

across the Kalyani group employs customer driven processes that assure proactive focus

on understanding customer needs and exceeding expectations. Quality planning drives

improvement initiatives and quality metrics are established to continually assess

progress and achievement of Quality Objectives strategically aligned to key areas of

business. Quality Excellence is facilitated through customer partnering and

involvement, concurrent product lifecycle design, advanced and streamlined

manufacturing operations, and best-in-class customer services.

Almost all companies across the Kalyani Group have promptly obtained

certification to the latest and most comprehensive ISO 9001-2000 Quality Standards.

This exemplifies our commitment to and achievement of World Class Excellence.

Our objective is to eliminate all non-value added processes, thereby reducing cycle

times in all facets of our business.

Our world class manufacturing is supported by corporate research including


Organization study

R&D, engineering support, advanced metallurgical analysis, and cutting edge testing

facilities. This support structure, coupled with outstanding manufacturing capabilities,

allows us to consistently provide our customers with the highest quality products and

ensure our world-class status in this global marketplace.

Our ability to penetrate foreign markets and increase global clients reflects the

company’s high technological capabilities.

Quality assurance division is a customer’s representative. This department acts as

communicating channel between customers and production department. They make

steel for automobile industries and also for stimulus tubes. It is also used for

transportation of oil and any other fuel.

In quality assurance department, marketing department plays in important role.

The marketing department will receive the orders of the customers. This process is

called as ‘Contract Review’.

Then the quality assurance department translates the need of the customers to the

production department. This department also inspects the cast And rolled products. It

checks the materials before it is taken for production and also tastes the products before

dispatching to the customers. Ever since the procurement of the raw material till the

dispatch of the final product the function of observation and examination of the quality

control department is keen and careful.


Organization study

QUALITY POLICY:-

Quality policy of this department is to produce steel, which is based on the part of

the world.

Their main objective is to make steel very competitive in price. The orders from the customers will be accepted only according to their capacity to produce.

Functions: Adding internal/external chemistry to attain a specified standard

Testing the manufactured steel to any cracks or hot

Check the raw material

Check ferrous oil

Responsibilities:

Making standard products

Testing as per customer request

Responsible for customer dissatisfaction

To make steel competitive in prices

Quality Plan:

Identify the customer

Identify their needs

Convert the needs into the specification


Organization study

Verify your capability and availability & if we are able to stock to a schedule of

manufacture & dispatch.

Finance & Accounts Department:-

GOALS:

Profit maximization.

Wealth maximization.

FUNCTIONS: -

Funding Activity:

Banks provide long term funds as well as short term funds

Long term funds like debentures, term loans etc. are used for project financing

Short term fund is taken to meet the working capital requirements

Commercial banks help in giving short term funds

The finance department of KSL (pig iron division, siruguppa) has to be always in

touch with the head office, so that the corporate office can transfer the fund to the

unit/factory. This operation is called fund transfer booking.


Organization study

2. Treasury Function:-

They maintain separate cash & bank balance book. They deal with funds by issuing

cheques or with drawing cash.

3. Book Keeping:-

A company should maintain separate books of account. There is a computerized

system including the accounts of purchase, sales, cash, bank, stock, tax, fixed assets etc.

The department has to disclose the information to the share holders of the company.

4. AUDIT:

It Consists Of:

1. Internal Audit, which is for only department.

2. External Audit, which include outside experts.

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 auditing.

5. MIS:

They display information about the cost of production plant performance & profit.


Organization study

6. Taxation:

There are different types of taxes like Income tax, Sales tax, and Excise tax etc.

The income tax is of two types one on the company & the other in the establishment.

On the company it is based on the profitability. In the establishment the employees or

contractors will be leaved tax. The authorities take the responsibility of paying tax by

deducting the amount from their salaries.

7. Preparation of Financial Statement:

Monitoring financial performance

Looking into the working requirements like men, material, money etc.

Maintain proper books of accounts

Responsible of auditing

Remind the management about the plant maintenance and performance by way

of budget monitoring


Organization study

It is a unit of accounting where the raw materials are bought from kalyani Steels

Ltd (siruguppa).Accounts are totally independent. Company maintains its own

accounts. Then comes funding. It is based on cost basis. It is not profit center, it is cost

center. The functions of this dependent is to maintain accounts of this unit, coordinating

of head office and the unit for funds see that production is on.

RESPONSIBILITIES: -

To ensure that the accounts are maintained properly and costing is calculated

using computerization technique.

Deviations of cots are highlighted to management and effective utilization of the

funds.

Up to date costing of the iron making, steel making and rolling operation to be

maintained.

Any decision regarding the financial requirements is taken jointly between the

site and corporate office. It is taken in a formalized means.


Organization study

ORGANISATION CHART FOR FINANCE DEPARTMENT


Vice-President

Finance Manager

Sales & Dispatch Section

Bill Section Cash Section

Organization study

Management Information System Department:-

The main function of this department is-

Computerization.

Networking.

Setting of Internet and info net.

Details of ERP packages:-

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


Organization study

reasons for the orders remaining pending. They should also know who the

customers an 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 can’t be made

as per the O.A. then the dispatch channel is prepared.

Truck loading sheet is important for quality people to check weather the right

product is loaded or not in the truck after that invoicing is done.

a. Financial Accounting System

b. Costing System

c. Stores And Purchase System

d. Excise System

e. Sales.

f. Pay roll.


Organization study

Purchase Department:-

President approves purchase department. This department serves an important

purpose for user department. This dept. will float the enquiries by getting 3-4

quotations. After this they will prepare a comparative statement.

DEPARTMENT POLICY: -

The policy of this Department is that President should approve each and every

purchase requisition. The purchase order, which amounts up to Rs. 25,000/-, should get

the signature of Manager Commercial.

The Order which amounts from Rs. 25,000/- to Rs. 5,00,000/- should have a signature

of President and. The order which amounts above Rs. 5,00,000/- must have the

signature of President after this the gate entry will be made; next it will go to the stores.

Here they will prepare goods received cum inspection report i.e., GRIR then that will be

sent to user dept. and quality assurance dept. for their approval. After getting all these

departments approval lastly it will be sent finance dept. This above-mentioned procer

will take nearly for 1-2 weeks of time. The main responsibility of purchase dept. is to

procure materials.


Organization study

ORGANISATION CHART FOR PERCHASE DEPARTMENT


Vice-President

Purchase Officer

Purchase Engineer

Purchase Asst 2Purchase Asst 1 Purchase Asst3

Organization study

STORE DEPARTMENT:-

To ensure availability of raw material with management quality and quantity at

right time with right price. To consider suppliers as partners in our business towards

TQM goals. It has keep FIFO method of storing materials. On the basis of item code

delivery order is to be considered. On the basis of store entry report, material has to be

issued. Department member is checking the materials.

Three grade of material A, B, C.

Directly used material – iron, ore, coke, etc.

Supporting system.

Other raw material.

Suppliers of iron ore:-

Daksh minerals & marine Pvt ltd.

Sri laxmi Balaji .

Sujatha enterprises

Suppliers of coke:-

Bhatia international ltd, indoore.

Gujrat NRE coke, Dharwad.

Bharat NRE coke, Dharwad.


Organization study

Only division i.e:

Pig Iron

If weighment required If weighment not required


Entry of Inward material at

ingate

Weigh Bridge

STORES

Store Entry and Physical inspection

SE Report Generation for quality inspection

Rise Dispensary Note

Inspection

Any work or modification

Quality updation and GRR Confirmation

Raising the disturbancy for rejection to intimate

to purchase and suppleier

I.O.M. by concern dept

through purchase

Preparation of RGP for sending the material for

rework

GRR Printing signing and storing

Stacking the material at appropriate location

Issuing the material against the prescribed material requisition

slip authorized signature

Rejected material stored in rejection room

Material sent to party through NRGP

Information to purchase

If damaged / excess qty returned to party

through NRGP

STORES FLOW CHART

If any deviation

If Accepted If Rejected

Organization study

SAFETY DEPARTMENT:-

The group is committed to having a safe and pleasant working environment. Health & safety best practices form an integral part of the group's business activities. We believe that our employees are the key to our company's success and it is our moral responsibility to ensure that they have a safe & healthy working environment

Safety is a top priority in all our operations across the group. All group companies have a safety committee that meets regularly to provide updates on safety issues, conduct rehearsals of safety procedures and onsite emergency action plan and training programs on safety related issues. Our goal is to drive injuries, occupational illnesses and operational incidents as close to zero as possible. To realize our zero-accident goal, we are taking further measures to reduce risks by undertaking risk assessment of our manufacturing facilities. Operation manuals are prepared and each operation unit also educates its employees on labor safety.

The group also continues its drive of 'Keep Fit' which it started in 2002. The purpose of this drive is to reduce absenteeism due to illness and to encourage individuals to follow a healthy lifestyle.

The Keep Fit drive includes regular health check-ups including health, diet and a fitness test.


Organization study

Responsibilities:-

That human life is precious. Safety of human lives and limbs has overriding

importance. Whatever else may be the business or manufacturing compulsions

We are committed:

To provide safe machinery, equipment, methods, operations, tools and

environment for prevention of accident.

To achieve an integrated safety & health system in all areas of activities.

To enforce relevant statutory provisions of safety and health for preventing

accident.

We expect our employees:

To observe safety rules

To use safety appliances and devices


Organization study

To report to managers any unsafe condition of machines

To work as per lay outs

To care for personal hygiene

To practice safety conscience, culture

To be always alert in accident prevention measures

We solicit co-operation of all employees to achieve the ultimate goal of "Total

Safety".

SWOT ANALYSIS:-

Strengths:

Commissioning the iron plants has reduced the dependability on scrap.

Non-existence of labour unions.

KSL has its reach throughout south India.


Organization study

Very close proximity of iron ore depositions.

Self power generation.

Easy availability of raw materials.

Weaknesses:

Due to Less source of funds the diversification capacity at four divisions of the

plant are not fully utilized.

Not able to get the grants from various financial institution.

Concentrated on South India market only but they neglected the other parts of

India.


Organization study

Costs of using electric furnace cannot be reduced & due to high consumption

and power KSL’s pricing is not very effective to that of its competitors.

Lack of proper infrastructure.

KSL has a common problem which most of the public sector units have that is

having more employees.

The company is entirely depends on external transportations like truck operators,

railways etc because of these depends on external conveniences they have to

sometimes suffer loss.

Opportunities:-

Globalization of Indian economy bound to increase demand levels.

Major automobile units have come up in South India like Toyota Volvo etc

Steel Industries such as Jindal, Kirloskar have come up in Bellary region from

which demand for steel will increase.


Organization study

Self power generator and effective utilization of power leads to lower cost of

production.

Threats:

Attrition rate is high.

Price hike in raw materials.

Competition from the new entrants in the region like Jhanaki, Benaka & others

RECOMMENDATIONS

It can provide good commission to the traders for further increase in sales.

KSL could try to enter all the regions of India as its new market place.

It may diversify to manufacture other products with steel.

Effective management of cash receivables & inventory may be done to result in

satisfactory management of working capital.


Organization study

As the company is facing wrong selection of raw material a highly skilled &

expert person who is experienced in this field may be appointed in the purchase

department

Dealers meeting can be conducted once in every 3 months to solve the problem

of dealers and as well as to get suggestion from them.

Training program may be necessary for all the employers to improve quality of

production.

It may reduce the costs, develop customer sensitiveness and give incentives to

the workers and employs.

As some of the employees refuse to accept new role & responsibilities they may

be motivated in terms of monitory benefits. There by the employers may take

initiatives to accept new roles & responsibilities.

Though the employees are earning a reasonable amount of salary the company

could think of giving some hikes, depending on inflation level.

The recruitment of employees to the organization could be made particularly

based on their skill and knowledge not by any references.


Organization study

Total quality management concept may be adopted in order to improve the

quality and other aspects of the company.

Management may have to work more efficiently in order to improve the quality

and other aspects of the company.

FINDINGS:-

1. The performance appraisal system suffers from a lack of proper orientation of

the workmen towards the performance appraisal system.

2. No training has been organized by the organization for the appraisers to enable

effective performance appraisal. Lack of training to the appraisers leads to the

following drawback.

i. Lack of uniformity in communication of criteria to the workmen.


Organization study

ii. Lack of uniformity in the post-appraisal follow up by the appraisers.

3. The post appraisal follow up is not found to be adequate.

SUGGESTIONS:

Production capacity has to increase by adopting high technical machines

according to demand

The Organization should take suggestions from workers and that have to be

implemented seriously

By adopting more and more technological methods in production it can enter

easily to global market


Organization study

The organization should adopt various cost cutting measures by

o Reduction in wastage

o Reduction in maintenance

The employees should be more educated in taking precautionary measures, while

they work in dangerous production unit

Papers work has to be reduced.

SUMMARY AND CONCLUSIONS:-

M/s. Kalyani Steels Limited are running 60 000 TPA pig iron plant at

Honnarahalli village, Siruguppa taluk, Bellary District in Karnataka State. They

have proposed to enhance the production capacity of the plant from 60000 TPA

to 120000 TPA.

a. The enhancement of capacity will be achieved mainly by utilization of

existing surplus capacity and incorporating improvement and

modernization of process.

b. The Iron industry has national priority to overcome shortage of iron in the

country. This has the potential to curtail the export of iron ore.


Organization study

c. The concept of Reduce, reuse and recycle is practiced in the industry as

per the eco-policy of Govt. of India. Cooling water is completely recycled

in the system.

d. This industry does not produce any toxic products and does not have

significant adverse effect on the quality of land, water and air. The

industry has taken all the necessary preventive measures to mitigate even

the small effects which may be caused by industrial activities.

e. There are no protected forests, sanctuary, archeological important

structures or other sensitive locations in the vicinity of the factory except

the river Tungabhadra.

f. Considering environmental management plan adopted in the industry to

protect environment and advantages of the industry to the country, the

authority’s can decision to accord environmental clearance for the

proposed production enhancement of the industry.

BIBLIOGRAPHY

1. ‘Human Resource & Personnel Management’

By K.Aswathappa.

Published by :TATA McGraw-Hill Publishing Company Limited

Fourth Edition


Organization study

3. Internet reference

www.google.com

www.steel.senario.com

www.indianstatistics.com

www.KSL.com


http://www.indianstatistics.com/

http://www.steel.senario.com/

http://www.google.com/

Documents

intrnship report on kalyani steels ltd