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30 Stainlßss Steßl Focus 03/2011

Production capacity at the Viraj groupis currently 380,000 tonnes. Thecompany started with 100 em-

ployees, and today has a human resourcecapital of more than 9,000 employees. Thegroup’s turnover for the financial year 2009-2010 was Rs40,000m.

Viraj is the solution, it says, for all stainlesssteel engineering needs in a wide range ofgrades, sizes and lengths for importers andstockists. The group produces more than50 grades of stainless steel. It is preferredover other international suppliers, it says,because of the availability of such a wide

Neeraj Raja Kochhar is the promoter of the 1 billion US dollar, or Rs45,000m, VirajGroup. Viraj Profiles Ltd is currently ranked No.2 in the world in the stainless steel longproducts segment. Its products are exported to over 80 countries worldwide, and keymarkets include Germany, the USA, Turkey and Korea.

range of stainless steel products under oneroof.

The stainless steel engineering productssupplied by Viraj include bright bars, wirerod and wire, fasteners, flanges and profi-les. The top management of the companycomprises Neeraj Raja Kochhar, the Chair-man and Managing Director, and ManagingDirector Renu Kochhar.

The group has export-centric divisions forthe manufacture of stainless steel wire andwire rod, profiles and sections, fasteners andforged flanges.

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Wire rod 55%Rolling mill divisions 17%Sections & profiles 17%Flanges & forgings 10%Bright bars 26%Wire 12%Fasteners 17%

Viraj Alloys Ltd is the flagship productioncompany of the group which started in 1991-92. Initially producing utensil grade stain-less steel flats for consumption in domesticmarkets, it subsequently diversified intospecialised grades (such as 304 and 316),which were used as inputs by the stand alonecompanies Viraj Impo Expo Ltd (VIEL) andViraj Forgings Ltd (VFL). VFL specializesin the manufacture of stainless steel flan-ges and forged rounds. To generate highervalue, Viraj Alloys Ltd expanded its capaci-ty in stages up to 108,000 tpy, and alsoadded continuous casting and rolling faci-lities to generate higher value. Later twomore stand alone companies were formedunder the names Viraj Profiles Ltd and VirajSmelting Ltd.

The stand alone company Viraj Profiles Ltdcommenced its operations and industrialactivities in the financial year 2000-2001 inthe area of stainless steel sections and pro-files (angles, flat bars, channels and beams).Viraj Smelting Ltd has been focusing on theproduction of stainless steel wire since thefinancial year 2001-2002.

Viraj has also diversified into the manufac-ture of industrial fasteners since the financi-al year 2006-2007. Thereafter, steps weretaken to further harness the potential of incre-asing the capacity of the unit, with new faci-lities installed in the melting shop, as well asa scrap shredding unit. As a result, meltingshop capacity has risen to 240,000 tpy. In2006, Viraj Profiles Ltd set up a new 192,000tpy wire rod mill, and it has also set up a100,000 tpy annealing and pickling line.

The stand alone companies Viraj Alloys Ltd,Viraj Impo Expo Ltd and Viraj Smelting Ltdwere merged into Viraj Profiles Ltd effectiveApril 1, 2007, and now only Viraj ProfilesLtd is functioning as a multi-location EOU.

Logistics and CFS company

Viraj today is almost self-reliant in terms of

The stainless steel production capacity ofViraj Profiles Limited is fully matched by thecapacities of individual units as follows:

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its transportation needs. The movement ofcargo, both imported and exported, from andto JNPT Nhava Sheva Port in India is hand-led by its own fleet of trucks. In recent mont-hs, Viraj has also started its own ContainerFreight Station (CFS) which covers a totalof 9 acres and has a handling capacity of6,000 containers per month. The CFS is lo-cated just 14km from JNPT Nhava ShevaPort which is India’s largest containerisedport terminal.

The Container Freight Station, which opera-tes as a division of Viraj Profiles Ltd underthe name of Vaishno Logistics CFS, will notonly cater to Viraj’s own needs but also of-fer services to other exporters and impor-ters. As well as reducing costs for Viraj, thefacility will therefore generate additional re-venue for the company.

The whole 9 acre area is enclosed with an8ft high compound wall, in accordance withthe standard norms and requirements of theCustoms Dept, and customs officials areposted at the gate of the CFS to check gate-in and gate-out of import and export cargo.The company has its own container hand-ling equipment, which includes two 60-ton-ne capacity reach stackers, as well asforklifts for cargo up to 3 tonnes in weight.

Stringent quality measures

With a central focus on the customer, Virajfulfils the requirement of delivery and ser-vice with no compromise on quality throughrigorous methods such as:

� automatic ECCD detecting machinefor surface defects and immersion typeultrasonic test in-line for the bright bar

� tight control of trace elements andnon-metallic inclusion for surface qua-lity and internal quality

� 100% inspection for all the products� monitoring system to evaluate quali-

ty related factors for each manufac-turing process

� high tech production facilities for au-stenitic, ferritic, martensitic, duplexand precipitation hardening stainlesssteel grades

To benchmark ourselves with universal qua-lity standards we are upgrading our opera-tional parameters as follows:

� central Quality Centre to manage are-as such ppm rejection rate

� continuous research and developmentfor refining process, hot workability,cold workability and new products ofstainless steel

� installation of an in-line solution an-nealing treatment and pickling line inthe wire rod mill for better surface quality

Their 75+ certifications such as ISO 9001-2008 approved by TÜV NORD, AD 2000Merkblatt WO approved by TÜV NORD,Pressure Equipment Directive - PED 97/23/EC approved by TÜV NORD and Saudi Aram-co - Saudi Arabia, confirm that quality is atthe heart of all manufacturing processes.

Financials and growth

During the 2009-2010 financial year, Virajsold 214,302 tonnes of stainless steel engi-neering products and for the current year2010-2011, it estimates sales of 235,000tonnes. Since prices of stainless steel pro-ducts vary alongside prices of raw materi-als such as nickel, chrome, and molybde-num, the sales value of Rs29.4 billion in 2009-2010, is estimated to increase to Rs42 billi-on in 2010-2011. Over the next three years,starting in the financial year 2011-2012, Virajexpects to register sales volumes of 340,000tonnes, 398,000 tonnes, and 440,000 tonnes,and sales values of Rs70 billion, 82 billionand 91 billion, respectively. While the avera-ge EBIDTA/sales ratio was 10.9% in the last3 years, the company expects this to increaseto 14% in the next 3 years.

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The vision

“To be counted amongst the most respec-ted and preferred enterprises globally”

A vision that this expanding organisation willattain through its mission of:� One stop shop for stainless steel

engineering products� First preference of the global market

leaders� Upgrading and adopting the latest

technology� Product and market development for

maximizing value� Delivering operational excellence� Continual growth through customer

service, innovation, quality and com-mitment

� Committed to minimum CAGR of 25%� Plough back income to diversify into

stainless steel HR-CR project� Responsible and abiding corporate

citizen� Committed to a green environment

� Creating an ownership based perfor-mance culture

� Creating a mix of professionals com-prising existing loyal employees andexternal talent with the aim of buil-ding world class systems and pro-cesses to take Viraj to new heights

� Developing the internal talent poolthrough focused talent managementpractices

� Fostering an enabling culture so asto bring about the potential of eachemployee

� Creating an employer brand througha high level of employee engagementin the organisation with the aim ofbecoming an “organization of choice& a great place to work” in the next 2years.

Behind every successful manthere is a woman

On December 25, 2010, the managing di-rector of Viraj Profiles Ltd, Renu Kochhar,was declared “Businesswoman of the year”at the MadhavraoScIndia Leadership Awards(MSLA) in Kanpur. Dignitaries in attendan-ce were Hon'ble Sri Prakash Jaiswal, MP,Indian National Congress; Hon'ble SriArunYadav, Union Minister of State Govt. ofIndia; and Hon'ble Sri Pradeep Mishra, pre-sident of Madhavrao ScIndia LeadershipAward 2009. Renu Kochhar attributed hersuccess to Neeraj Raja Kochhar who hasunconditionally supported her throughout hercareer, and accepted the award on behalf ofher Virajian family without whom such suc-cess would not be possible.

Renu Kochhar is Managing Director of VirajProfiles Limited (VPL). After playing a sup-portive role in the development of the orga-nization Mrs. Kochhar, joined VPL in 2001as Director of the Profiles Division. Frommanufacturing to marketing she was thedriving force behind the successful launchof the profile product range internationally.During her term in this position VPL wasrecognized for achieving “Highest Exports”as an Export Orientated Unit and receivedan award from SEEPZ in 2009. It is her per-sonal commitment to exceeding expectati-ons that makes her a clear winner in anyfield. This talent and experience combinedwith compassion towards the employees,whom she refers to as her Viraj family, has

� First choice of the employees/sou-ght after employer

� Openness to backward and forwardintegration to sharpen its competiti-ve edge

Internal changes -people and process centric

Considering the vision and mission of theorganisation, a people centric strategy hasbeen formulated which is based on the fol-lowing:

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34 Stainlßss Steßl Focus 03/2011

led to her current portfolios of Human Re-sources, Corporate Communication andCorporate Social Responsibility (CSR).Renu Kochhar has been instrumental in thetransformation of the entire organizationthrough HR initiatives. Having played a keyrole at operational level and been integral tothe development of the medium to long-termbusiness plan, she recognizes the correla-tion between productivity, talent acquisition,internal resource development, and techno-logical advancement, thus aligning it withthe overall growth strategy of the organizati-on. She has launched a full 360 degree de-velopment programme which has enabledeffective initiatives such as implementationof a performance management system,identification of training needs and relevantcourses, manpower productivity studies,introduction of reward and recognition poli-cies, enhanced employee benefits and wel-fare support, strengthened organizationalstructure and culture, team building events,and leadership workshops.

steners, flanges and forged bars. Adoptionof sophisticated technology, automation andde-bottlenecking at all its downstream unitsis pursued by Viraj on a regular basis, thecompany says. As a result, its productioncapacity in the section/profile division willincrease by 33%, in bright bars by 37.5%,in wire by 22%, in fasteners by 20%, and inflanges and forged bars by 14%.

HR CR Project

The company is planning to set up a sectorspecific Special Economic Zone (SEZ) forstainless steel engineering products at Vil-lage Wada, Dist. Thane in the Indian stateof Maharashtra. In this SEZ, Viraj will beexpanding its production capacity as wellas its range of products and is setting up anintegrated production facility for coils andsheets. Following this diversification, theproduct range at Viraj will also include:

� Hot rolled stainless steel coils� Cold rolled stainless steel coils� Annealed and pickled stainless coils

- both hot and cold rolled

The size range will be:

HR Coils: 2.0-12.7mmCR Coils: 0.3-4.0mmHRAP: 2.0-7.0mmCRAP: 0.3-4.0mm

Following commissioning of the new hot andcold rolling facilities in 2014, the total stain-less melting capacity at Viraj will be 1.5mtpy, and sales will rise to US$4 billion, of whichexports will account for some $3 billion.

For further information please contact theCorporate Communication Team atcorpcomm@viraj.com or visit www.viraj.com

Expansion plans

At present, Viraj has a stainless steel ma-king capacity of 348,000 tpy, which will riseto 528,000 tpy from October 2011. Morethan 90% of Viraj’s production is austeniticgrades. Melt shop output is processed furt-her at the downstream units to make highervalue added engineering products, such aswire rod, bright bars (rounds, squares andhexagons), sections and profiles, wire, fa-