sail - kettavan

8/3/2019 SAIL - Kettavan

1/20

1

A REPORT ON Steel Authority of India (SAIL)

SUBMITTED TO SUBMITTED BY

Mr.K.Ravishankar, Mr. M. Mageshkumar

Assistant Professor I Year MBA - B

School of Management School of Management

Vel Tech University, Avadi Vel Tech University, Avadi

DATE: 07.12.2011

PLACE: AVADI


2/20

2

TABLE OF CONTENTS

CHAPTER

No.

Contents Page Number

1 Company Profile

1.1 History of the company 3

1.2 Vision, Mission 4

1.3 Location 6

1.4 Awards and Certificates 8

1.5 Milestones 11

2 Product Profile 11

3 Competitor Analysis 14

4

Human Resource Strength

and Joint Ventrue 15

5 Financial Performance 18

6

Corporate Social Responsibility

Activities 20


3/20

3

CHAPTER-1

COMPANY PROFILE

1.1 History of the company:

1959-1973

SAIL traces its origin to the Hindustan Steel Limited (HSL) which was set up on January 19,

1954. HSL was initially designed to manage only one plant that was coming up at Rourkela.

ForBhilai and DurgapurSteel Plants, the preliminary work was done by the Iron and SteelMinistry. From April 1957, the supervision and control of these two steel plants were also

transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved toCalcutta in July 1956, and ultimately to Ranchi in December 1959.

A new steel company, Bokaro Steel Limited (Bokaro Steel Plant), was incorporated in January

1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and RourkelaSteel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel

Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. Thecrude steel production of HSL went up from 1.58 MT (195960) to 1.6 MT. The second phase of

Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill.The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in

February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at

Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity ofHSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.

1973-present

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 December 2, 1972. On this

basis the concept of creating a holding company to manage inputs and outputs under oneumbrella 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.

General Information about SAIL

Steel Authority of India Limited is the largest steel producer in India with a turnover ofRs.47040.50 crore in the financial year 2010-11. The company owns and operates five

integrated steel plants at Rourkela, Bhilai, Durgapur, Bokaro and Burnpur, three specialsteel plants at Salem, Durgapur and Bhadravati, and SAIL refractory unit at Bokaro,


4/20

4

Jharkhand with four plants in Jharkhand and Chhattisgarh producing refractories for SAILsteelplants. The Government of India owns about 86% of SAIL's equity and retains votingcontrol of

the company. However, by virtue of its 'Maharatna' status, SAIL enjoys significantoperationaland financial autonomy.

The company produces the widest spectrum of steel products in the country. It produced14.9

million tonnes (MT) of hot metal, 13.8 MT of crude steel and 12.9 MT of saleable steelin 2010-11. It employs around 1,10,000 persons. The company has recently completed 50glorious yearsof its operations.

_SAIL has individual units handling research and development, engineering and

technology,consultancy, environment management, coal supply, railway logistics, managementtrainingetc. In order to retain the market leadership position in the country and

maintaincompetitiveness, SAIL is currently implementing a growth plan to enhancein productioncapacity in a phased manner. Under the ongoing phase of the modernization and expansion plan,

hot metal production capacity will get expanded to 23.6 MT by 2012-13.

1.2 Vision

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

roductivity, profitability and customer satisfaction.

CREDO

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

We uphold highest ethical standards in conduct of our business.

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

change.

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

rewards.

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

lives.

The Mission

Our mission is to groom professionals of tomorrow by Imparting high quality education in Management and Information Technology

Developing intellectual capabilities through a challenging curriculum Providing training and development services

Fostering research


5/20

5

Extending consultancy services to the industry Disseminating information through the publication of books, journals and magazines

SAIL - Into the Future

Modernisation & Expansion

SAIL, is in the process of modernizingand expanding its production units, raw

material resources and other facilities tomaintain its dominant position in the

Indian steel market. The objective is toachieve a production capacity of 26.2

MTPA of Hot Metal from the base levelproduction of 14.6 MTPA (2006-07

Actual).

A new unit coming up at ISP

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

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

Objective of Expansion Plan

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

y 100% processing of steel through continuous casting

y Value addition by reduction of semi-finished steel

y Auxiliary fuel injection system in all the Blast Furnaces

y State-of-art process control computerization / automation

y State-of-art online testing and quality control

y Energy saving schemes

y Secondary refining

y Adherence to environment norms


6/20

6

Production Target

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

(Million tonne per annum)

ItemBase Case

(2006-07)

Actual

After Expansion

Hot Metal 14.6 26.2 (23.5)

Crude Steel 13.5 24.6 (21.4)

Saleable Steel 12.6 23.1 (20.2)

Figures in bracket indicate capacity after implementation of ongoing phase of

modernisation and expansion to be completed by 2012-2013

1.3 Location

HEADQUARTERS:

Ispat Bhawan, 40 Jawaharlal Nehru RoadKolkata - 700 071, Ph : 033-22883810/12/14/17/18 Fax : 033-2288 6183

COMMERCIAL DIRECTORATE:

HT House (13th Floor),18-20, KasturbaGandhi Marg, New Delhi - 110 001Ph : 011-2335 5733, Fax : 011-2335 5156E-mail : [email protected]

INTERNATIONAL TRADE DIVISION

Hindustan Times House, 13th Floor, 18-20,Kasturba Gandhi Marg, New Delhi - 110 001Ph : 011- 2371 4398, Fax : 011-2373 9691

E-mail : [email protected]


7/20

7


8/20

8

1.4 Awards and Certificate

World Steel Association awards Climate Action Certificate to SAILSteel Authority of India Limited (SAIL) has won Worldsteel Association'sprestigious Climate Action' certificate. The certificate recognises SAILsuntiring efforts towards saving the environment and preserving naturalresources, and specifically acknowledges that SAIL has supported CO2data collection in excess of 90% of its crude steel production. This data

has been reviewed internally by Worldsteel staff, verified independently by a steel industry expertteam and, as a final step, approved by SAIL.

Awards_


9/20

9


10/20

10

The excellent performance of the company has been widely recognised. It has wonnumber of awards and accolades in various fields during the financial year 2006-07.

These include:

_The prestigious SCOPE Gold Trophy to SAIL for Excellence and OutstandingContribution to the Public Sector Management institutional category for 2004-05.

_SCOPE Meritorious Award to SAIL for Environmental Excellence & SustainableDevelopment for 2004-05.

_Prime Ministers Trophy for the best performing integrated steel plant to SAILsBhilai Steel Plant (BSP) for 2003-04 and 2004-05 making it record seven times

recipient of this prestigious award.

_Prime Ministers Shram Awards to 10 SAIL employees for 2004.

_Businessworld-FICCI-SEDF Corporate Social Responsibility Award 2006 to SAILfor its innovative Corporate Social Responsibility initiatives in the fields ofeducation, access to drinking water, medical and healthcare, sanitation,

communication/ roads, sustainable livelihood/ income generation, womensempowerment, tribal welfare, environment preservation, sports, reproductive and

child healthcare, heritage preservation, cultural and recreational activities.

_Vishwakarma Rashtriya Puraskar to 41 SAIL employees for 2005, which constitutesone third of total awards conferred amongst employees of all PSUs as well as private

sector in the country.

_First ever Sustainability Award - 2006 to BSP by Confederation of Indian Industries(CII) to recognise its excellence in Social, Economic and EnvironmentalPerformance. The plant also awarded the Golden Peacock Eco-Innovation Award

2006 by the World Environment Foundation.

_The coveted CII (Eastern Region) Productivity Award to Bokaro Steel Plant (BSL) ._National Sustainability Award for 2006 1st prize to SAILs Salem Steel Plantamongst Secondary Steel/ Alloy Steel Plants category, by Indian Institute of Metals.

_Rajiv Gandhi National Quality Award to BSP for 2006-07 by the Bureau of IndianStandards. The plant also bagged the Golden Peacock National Quality Award by theInstitute of Directors for 2006 and the Golden Peacock National Award for promoting

innovative HR programmes.

_Rourkela Steel Plant (RSP) bagged two awards under the National Safety Awards 2005 instituted by the Union Ministry of Labour & Employment

._National Safety Awards for the year 2002 & 2003 to Raw Materials Division


11/20

11

1.5 Milestone

SAIL was featured in the 2008 list ofForbes Global 2000 companies at position 647.[5]

y Golden Peacock Award for Combating Climate Change 2008 for BSP, Occupational

Health and Safety 2008 for BSL

[6]Of the 33 Prime Minister's Shram Awards announced for 2010 by the Ministry of Labour,

Government of India,17 of which went to PSUs,

SAIL employees bagged 11 awards. Of the total number of 76 awardees for the year, 45 belong

to SAIL - a remarkable distinction for any organisation. Maharatna SAIL has received theprestigious Golden Peacock Environment Management Award for the year 2011.

The award, in recognition of SAIL's initiatives and achievements in the field of environment

management, was presented by Union Minister for Home Affairs Shri P. Chidambaram on 24thJune, 2011

Chapter 2

Product Profile

Common grades : IS 2062/2006, IS 1786.2006 GRD (SAIL TMT and SAIL TMT HCR). Also

available in the following foreign specifications :

ASTM-A 615 Grade 40 (for TMT wire rods) and ASTM-A 615 Grade 40/Grade 60 (for TMTBars), if sufficient orders are available.


12/20

12

Packaging

Signode strapping in bundles of 5 tonnes Plain Rounds/TMT rebars/TMT-HCR rebars in sizes 8,10 and 12 mm are available in coils. The other sizes of Plain Rounds/TMT rebars/TMT-HCR

rebars are available in straight lengths.

Applications

Specification Application Special Qualities

SAIL TMT

General concrete reinforcements in

high rise buildings bridges and otherconcrete structures

Excellent bendability good

weldability and high fatigueresistance on dynamic loading

SAIL TMTHCR

Construction exposed to coastalmarine or underground environment

In addition to above this has highcorrosion resistance properties

SAIL TMT

Roof Bolts

Underground mine roof support and

slope

Better bond properties with

excellent strength

SAIL TMT

EQRConstruction in earthquake prone zone Better UTS/YS ratio

PRODUCT NAME UNITSINSTALLEDCAPACITY

PRODUCTIONQUANTITY

SALESQUANTITY

SALES

VALUE(Rs Cr.)

Saleable SteelMetricTonnes

11197000.00 12875211.00 11725172.00 44862.4900

Others N.A. 0.00 0.00 0.00 1794.0300

Pig ironMetric

Tonnes2455000.00 263170.00 155965.00 357.3000

Middlings/Rejects N.A. 0.00 0.00 139345.00 26.6800

Ingots Steel N.A. 0.00 0.00 0.00 0.0000Service Charges N.A. 0.00 0.00 0.00 0.0000

Steel (Traded) N.A. 0.00 0.00 0.00 0.0000Empties N.A. 0.00 0.00 0.00 0.0000

Crude SteelMetricTonnes

12839000.00 13761792.00 0.00 0.0000

Other Fiscal Benefits N.A. 0.00 0.00 0.00 0.0000Calcium Ammonium Nitrate N.A. 0.00 0.00 0.00 0.0000


13/20

13

Products

Details of SAIL Business

Table 1: Plants/Units, Locations and Products

Plants/Units Location Products

Bhilai Steel Plant Bhilai, Chattisgarh Blooms, Billets, Beams, Light&HeavyStructurals,Channels,Angles,Bars & Rods, Crane Rails,Plates,Rails, Long Rails, Pig Iron &Chemicals.

Durgapur Steel Plant Durgapur, West Bengal Blooms, Billets & Slabs, Joists,Channels, Angles, Bars, Rods &Rebars, Skelp, Wheels, Railway

Wheels & Axles, Pig Iron &Chemicals.

Rourkela Steel Plant Rourkela, Orissa H R Coils, Plates, CR Coils &Sheets GP/GC Sheets, TinPlates,Spiral Weld Pipes,Electrical Resistance WeldPipes,Cold Rolled Non-OrientedSteel, Pig Iron & Chemicals

Bokaro Steel Plant Bokaro, Jharkhand HR Coils/Sheets/Plates, CRCoils/Sheets, GP Sheets/Coils, GCSheets, Pig Iron & Chemicals

IISCO Steel Plant Burnpur, West Bengal Billets, Blooms, Beams/Joists,

Channels, Angles and RailsAlloy Steels Plant Durgapur, West Bengal Slabs, Blooms, Bars, Plates, CRM

Rolls, Concast Rollers, CraneWheels, Springs, Hammers, GrateBars, Hot Saw Blades, Bright BarsStainless Steel Liner Plates

Salem Steel Plant Salem, Tamil Nadu Cold Rolled Stainless Steel, HotRolled Carbon & Stainless SteelProducts, Micro-Alloyed Carbon

Visveswaraya Iron &Steel Plant

Bhadravati, Karnataka High Quality Rolled & Forged Alloy& Special Steel products

Maharashtra

Electrosmelt Ltd.

Chandrapur, Mahrashtra High/Medium/Low Carbon Ferro-

Manganese, Silico-Manganese


14/20

14

Chapter 3

Competitor Analysis

COMPETITORS Company Symbol

Tata Steel Ltd. TATSTE

Balaji Industrial Corporation Ltd. BALIND

Bhuwalka Steel Industries Ltd. BHUWAS

Eastcoast Steel Ltd. EASSTE

Electrosteel Steels Ltd. ELESTE

Ensa Steel Industries Ltd. ENSSTE

Essar Steel Ltd. ESSARS

Facor Steels Ltd. FACSTE

Gallantt Ispat Ltd. GALISP

Hariyana Metals Ltd. HARMET

JSW Steel Ltd. JSWST

Malvika Steel Ltd. MALVST

Marmagoa Steel Ltd. MARMST

OCL Iron & Steel Ltd. OCLIRO

Pittsburgh Iron & Steels Ltd. PITIRO

Ranjeev Alloys Ltd. RANALL

SAL Steel Ltd. SALSTE

Sharda Ispat Ltd. SHAISP


15/20

15

Chapter 4

Human Resources Strength

Employee Management of SAIL

SAIL realizes employees are one of the priority stakeholders for the company. It hasdevised a comprehensive program in order to provide a challenging career for them andremain as an employer of choice for many. The HR strategy followed by SAIL in order tomeet these objectives is:

yEnhancing competitiveness through manpower productivity

yLearning organization through improvement in work practices and multi skilling

yMotivation and involvement through reward policies

yCorporate responsibility through conducive IR scenario

yChange management through human resource planning

Employee Motivation Schemes:

Employee motivation schemes have been designed keeping in mind the commonframework for the organization but at the same time allowing enough flexibility to units for customisation.The schemes have been designed for monthly and yearly rewards based onthe following criterion:

yProduction

yCost

yQuality

yProfitability

The executive performance management system (EPMS) is a complete online processdeveloped in house wherein independent assessment is done by reporting and reviewing

officers with quantifiable KPAs weighted with clear cut evaluation criteria.Training initiatives for both technical staff and managerial cadre have been launched inorder to build competency through training in basic engineering skills and managementdevelopment programmes. Project based training in India and abroad for both categories of employees hasalso been introduced.

In order to enhance the learning culture within the organization, a system to learn frominternal best practices through workshops has been established. A culture to promote

learning through initiatives like Chairmans trophy for young managers, quizzing andharnessing industry academia collaboration by management development programmes has also beenlaunched.

Grievance Policy and Procedure:


16/20

16

yA three stage grievance machinery is in vogue in the steel Plants. In the first stage, theaggrievedemployee presents his grievance to his immediate superior or to thePersonnel Officer concerned. The grievance is looked into and a reply is given to theaggrieved employee at the earliest.

Citizens Charter: Steel Authority of India Limited 21

yIf the employee fails to receive a reply to his grievance within the stipulated period or ifhe is not satisfied with the reply, he may take up the grievance to the second stage viz.the Head of the Department. The Head of the Department looks into the grievance inconsultation with all concerned, including the Personnel Officer and may also give apersonal hearing to the aggrieved employee, if necessary. After examining the grievance thoroughly, theHead of the Department gives a suitable reply to the aggrieved employee.

yIf the employee is not satisfied with the reply received at Stage-II, he is free to take up

the grievance at Stage-III, which consists of a bipartite committee with representativesfrom the Management and the recognized Union.

yIn some of the plants, there is a provision for appeal to the Chief Executive Officer/Chief Executive, if the employee is not satisfied with the decision given by the Grievance Committee atStage-III. In such cases the decision of the Chief Executive

Joint Venture

y NTPC SAIL Power Company Pvt. Limited (NSPCL): A 50:50 joint venture between

Steel Authority of India Ltd (SAIL) and National Thermal Power Corporation Ltd (NTPC

Ltd); manages SAILs captive power plants at Rourkela, Durgapur and Bhilai with acombined capacity of 814 megawatts (MW).

y Bokaro Power Supply Company Pvt. Limited (BPSCL): This 50:50 joint venture

between SAIL and the Damodar Valley Corporation (DVC) is managing the 302-MWpower generating station and 660 tonnes per hour steam generation facilities at Bokaro

Steel Plant.

y Mjunction Services Limited: A 50:50 joint venture between SAIL and Tata Steel;promotes e-commerce activities in steel and related areas. Its newly added services

include e-assets sales, events & conferences, coal sales & logistics, publications, etc.

y SAIL-Bansal Service Centre Limited: A joint venture with BMW Industries Ltd. on40:60 basis for a service centre at Bokaro with the objective of adding value to steel.

y Bhilai JP Cement Limited: A joint venture company with Jaiprakash Associates Ltd on26:74 basis to set up a 2.2 million tonne (MT) slag-based cement plant at Bhilai.


17/20

17

y Bokaro JP Cement Limited: Another joint venture company with Jaiprakash AssociatesLtd on 26:74 basis to set up a 2.1 MT slag-based cement plant at Bokaro.

y SAIL & MOIL Ferro Alloys (Pvt.) Limited : A joint venture company with Manganese

Ore (India) Ltd on 50:50 basis to produce ferro-manganese and silico-manganese

required in production of steel.

y S & T Mining Company Pvt. Limited: A 50:50 joint venture company with Tata Steel

for joint acquisition & development of mineral deposits; carrying out mining of mineralsincluding exploration, development, mining and beneficiation of identified coking coal

blocks.

y International Coal Ventures Private Limited:A joint venture company/SPV promoted

by five central PSUs, viz. SAIL, CIL, RINL, NMDC and NTPC (with respectively28.7%, 28.7%, 14.3%, 14.3% and 14.3% shareholding) aiming to acquire stake in coal

mines/blocks/companies overseas for securing coking and thermal coal supplies.

y SAIL SCI Shipping Pvt. Limited: A 50:50 joint venture with Shipping Corporation ofIndia for provision of various shipping and related services to SAIL for importing of

coking coal and other bulk materials and other shipping-related business.

y SAIL RITES Bengal Wagon Industry Pvt. Limited: A 50:50 joint venture with RITESto manufacture, sell, market, distribute and export railway wagons, including high-end

specialised wagons, wagon prototypes, fabricated components/parts of railway vehicles,rehabilitation of industrial locomotives, etc., for the domestic market.

y SAIL SCL Limited: A 50:50 JV with Government of Kerala where SAIL has

management control to revive the existing facilities at Steel Complex Ltd, Calicut andalso to set up, develop and manage a TMT rolling mill of 65,000 MT capacity along withbalancing facilities and auxilliaries.

y NTPC SAIL Power Company Limited (NSPCL)

y Bokaro Power Supply Company Pvt. Limited (BPSCL)

y mjunction services limited

y SAIL-Bansal Service Center Ltd

y

Bhilai JP Cement Ltdy Bokaro JP Cement Ltd

y SAIL&MOIL Ferro Alloys (Pvt.) Limited

y S&T Mining Company Pvt. Ltd

y International Coal Ventures Private Limited


18/20

18

Chapter 5

Financial performance

Investor Relationship Management of SAIL

SAIL realizes investors are one of the priority stakeholders for the company. It has devised acomprehensive program in order to achieve excellence in service delivery to investors and resulting incustomer satisfaction.

Investor Groups

Investors in SAIL have been divided into the following groups:

yShareholders Approximately 3,00,000 in number

yBond Holders

yBanks/Financial Institutions/credit Rating Agencies

Services provided

The various services provided by SAIL to the various investors can be summarized asfollows:

yShareholders Dividend payouts, Share Registration Certificates, transaction related


19/20

19

services like account and address updation, document delivery services like accountstatement, annual reports etc. These services are provided on behalf of SAIL by M/sMCS Ltd. who has been appointed as Register & Transfer agent (RTA).

yBond Holders Interest Payouts. Trustees are appointed for every series of bonds

issued by SAIL and RTA M/s RCMC is appointed as the RTA for bond holders.

yBanks Interest payment on Loans (Working Capital, Term loans, Corporate Loansetc.), treasury related (Current Account, Fixed deposits, Bank Guarantee, LC etc.)

Grievance Redressal MechanismThe grievance redressal mechanism depending upon the category of investor can besummarized as follows:

yShare Holders Shareholders may approach SAIL for any grievance either throughappointed RTA or other channels like SEBI, stock exchanges or Ministry of Corporate

Affairs by way of written letter or E-mail. Depending upon the method of approach, theshareholder grievances are either settled by RTA or directly by SAIL shares department.

yBond Holders Bond Holders may approach the respective trustee for any grievance.

yBanks Any grievance related to banks, financial institutions and credit rating agencies are handled atthe level of GM( F & A).Citizens

Vendor Groups

Vendors in SAIL have been divided into the following groups:

ySuppliers Raw Materials,yService Providers Transporters,

yContractors

Services provided

The various services provided by SAIL to the various investors can be summarized asFollows

:ySuppliers Supplier Contracts, Quality and commercial specifications, Transportationofmaterial to SAIL plant, time and schedule of material delivery, integrity pact etc.

yService Providers Service Contracts, Quality and commercial specifications, time andschedule of service delivery, integrity pact etc.

yContractors Material and labour contracts, time and schedule of delivery, Quality and commercialspecifications, safety and environmental standards, integrity pact etc.

Chapter 6


20/20

20

Corporate Social Responsibility Activities

sail - kettavan

Documents