- 1. Steel Authority of India Limited (SAIL) Presented by: Smruti
Kasulwar Anumita Mukherjee
2. Topics to be covered
- Process-Raw Materials & Finished Goods
3.
4.
- Steel Authority of India Limited (SAIL) is a leading Public
Sector Undertaking (PSU) in which the Government of India owns
about 86 per cent of equity.
- It is a fully integrated iron and steel maker, producing both
basic and special steels for domestic construction, engineering,
power, railway, automotive and Defence industries and for sale in
export markets.
- It is ranked amongst the top ten public sector companies in
India in terms of turnover.
- The company has the distinction of being Indias largest
producer of iron ore and of having the countrys second largest
mines network.
About SAIL 5.
- SAIL has five integrated plants and three special steel
plants
6. 7. History 8.
- Hindustan Steel Private Limited was set up on January 19,
1954.
- December 2, 1972 :The Ministry of Steel and Mines drafted a
policy statement to evolve a new model for managing industry , the
policy statement was presented to the Parliament . On this basis
the concept of creating a holding company to manage inputs and
outputs under one umbrella was mooted.
- This led to the formation of Steel Authority of India Ltd. The
company, incorporated on January 24, 1973 with an authorized
capital of Rs. 2000 crore, was made responsible for managing five
integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and
Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978
SAIL was restructured as an operating company.
9. 10. 11. Raw Materials &Manufacturing process 12. Raw
material Consumption in thousand tonnes 1.5MT stage Lump Iron Ore
1240 Iron Ore fines 2930 Limestone for sinter plant 1185 Limestone
for lime & dolomite shop 443 Manganese Ore140 Dolomite for lime
& dolomite shop 57 Quartzite 90 Coking Coal 3344 Ferro Alloys
14.8 Bauxite 17 Quartzite sand for foundries 12.4 Maudling clays
5.8 Muddling for thermal power plant 231 13. Coal SINTER PLANT HR
CF PIG CASTING M/C PIG IRON HOT STRIP MILL CC Slabs BOF Lime stone
Iron ore HR plates/Sheet HR Coils for sale PROCESS FLOW OF BOKARO
STEEL PLANT PICKLING LINES ANNEALING LINES GALVANALISING LINES GPGC
CR COILS/SHEET COKE OVENS BLAST FURNACE CRM INGOTRolled Slab
SLABBIN G MILL TMBP COILS 14. 15. Marketing Strategies
- Marketing Network of SAIL:
- 14 Customer Contact Offices (CCOs)
16. 17.
- The clinical marketing strategies adopted by SAIL , Steel being
an industrial commodity it is very necessary to maintain customer
relationship for profitability and smooth running of company. SAIL
adopts following practices for customer satisfaction:
- Process adapted to access current / future expectation of
customers.
- It induces market research visiting customer premises attending
to customer
- CMO has Market Management Group where specialists monitor
changing demand pattern and development in each Market segment is
carried on.(ISO 9001:2000 certified Central Marketing Organization
( CMO ) is Indias largest industrial marketing set-up)
- It has posted market development officers at various locations
that are its eyes and ears for monitoring current and future
expectation of its customer.
- The Business-planning department is exclusively meant to study
customer's changing demand scenario and assess current and future
expectation
18.
- Tounderstandcustomerneeds seminars and workshopsarealso
organized by SAIL.
- Building Customer Relationship SAIL has adopted the philosophy
of recognizing segment of the market and identifying key customer
in segment and giving them preferential treatment.
- CMO sales executives have been trained to use direct selling as
tool for building long lasting relationship with the customers.
Easy access to customers to seek assistance makes proposals send
comments and compliments.
- SAIL has valued customers group in identifying their specific
needs specific to that group thus segmenting and developing market
segment for the products. Major product modifications are done as
per their specific needs of the Market segment thereby creating
product differentiation packages.
- SAIL is always in touch with market and tries to produce
according to market needs..
19. HR Strategies 20. HR Strategies
- SAIL had 138211 employees at the end of the FY-06. SAIL lays
emphasis on the training of its employees, and they are considered
its greatest asset. Regular tailor-made training programs for the
different categories of employees are conducted in India and
abroad. It has well-equipped training institutes in plants and MTI
at Ranchi.
- SAIL provides various benefits to its employees like cultural
and sports activities, etc.
- The SAIL HR Award for Excellence 2009 is one of the most
reputed awards for the Indian Manufacturing sector. Itll be awarded
to organizations who have implemented innovative People Management
Techniques over the past 5 years
21. 22. Balance Sheet & Financial Ratios 23. 24. Profit loss
account Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Income
Operating income 43,798.58 39,958.67 34,328.77 28,200.48 28,714.30
Expenses Material consumed 22,042.58 16,821.39 15,963.13 13,903.23
11,155.33 Manufacturing expenses 3,762.77 3,317.74 2,925.43
2,793.45 2,427.11 Personnel expenses 8,401.73 7,919.28 5,087.76
4,156.97 3,811.75 Selling expenses 935.68 1,143.90 1,066.73
1,108.12 971.78 Adminstrative expenses 1,644.78 1,321.44 1,064.29
1,035.99 780.67 Expenses capitalised -1,930.40 -1,832.22 -1,423.08
-1,352.05 -921.71 Cost of sales 34,857.14 28,691.53 24,684.26
21,645.71 18,224.93 Operating profit 8,941.44 11,267.14 9,644.51
6,554.77 10,489.37 Other recurring income 2,279.89 1,539.69
1,354.96 892.3 676.55 Adjusted PBDIT 11,221.33 12,806.83 10,999.47
7,447.07 11,165.92 Financial expenses 253.24 250.94 332.13 467.76
605.05 Depreciation 1,285.12 1,235.48 1,211.48 1,207.30 1,126.95
Other write offs 128.02 75.49 128.59 181.44 184.89 Adjusted PBT
9,554.95 11,244.92 9,327.27 5,590.57 9,249.03 Tax charges 3,284.28
3,934.65 3,253.80 1,694.36 2,592.37 Adjusted PAT 6,270.67 7,310.27
6,073.47 3,896.21 6,656.66 Non recurring items -277.12 161.9 53.75
45.64 -14.35 Other non cash adjustments 181.26 64.61 60.57 71.12
174.66 Reported net profit 6,174.81 7,536.78 6,187.79 4,012.97
6,816.97 Earnigs before appropriation 22,052.47 18,348.43 12,886.63
7,861.47 6,839.66 Equity dividend 1,073.90 1,528.25 1,280.42 826.08
1,363.03 Preference dividend - - - - - Dividend tax 181.26 258.91
197.98 115.86 185.24 Retained earnings 20,797.31 16,561.27
11,408.23 6,919.53 5,291.39 25. Sales 34,857.14 Less Variable Cost
Financial expenses 253.24 Material consumed 22,042.58 Manufacturing
expenses 3,762.77 Personnel expenses 8,401.73 34460.32 Contribution
397.00 Less Fixed Cost Selling expenses 935.68 Adminstrative
expenses 1,644.78 2580.46 Loss -2,183.46 26.
- P / V Ratio = Contribution / Sales*100
- BEP in sales = FC/PV Ratio
- MOS = Total Sales BEP Sales
Ratios P/V Ratio, BEP & MOS 27. 28. Profitability ratios
Operating margin (%) 20.41 28.19 28.09 23.24 36.53 Gross profit
margin (%) 17.48 25.1 24.56 18.96 32.6 Net profit margin (%) 13.4
18.16 17.38 13.79 23.19 Adjusted cash margin (%) 16.67 20.77 20.77
18.16 27.11 Adjusted return on net worth (%) 22.4 31.77 35.34 31.45
66.48 Reported return on net worth (%) 22.06 32.76 36.09 32.4 68.08
Return on long term funds (%) 28.31 44.47 45.55 36.75 63.24