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GALVALUME ISPAT INDUSTRIES LIMITED 51 INTRODUCTION HOT ROLL COILS Hot rolling is a metalworking process that occurs above the recrystallization temperature of the material. After the grains deform during processing, they recrystallize, which maintains an equated microstructure and preventing the metal from work hardening. The starting material is usually large pieces of metal, like semi-finished casting products, such as slabs, blooms, and billets. If these products came from a continuous casting operation the products are usually fed directly into the rolling mills at the proper temperature. In smaller operations the material starts are room temperature and must be heated. This is done in a gas- or oil-fired soaking pit for larger work pieces and for smaller work pieces induction heating is used. As the material is worked the temperature must be monitored to make sure it remains above the recrystallization temperature. To maintain a safety factor a finishing temperature is defined above the recrystallization temperature; this is usually 50 to 100 °C (122 to 212 °F) above the recrystallization temperature. If the temperature does drop below this temperature the material must be re-heated before more hot rolling. Hot rolled metals generally have little directionality in their mechanical properties and deformation induced residual stresses. However, in certain instances non-metallic inclusions will impart some directionality and work pieces less than 20 mm (0.79 in) thick often have some directional properties. Also, non-uniformed cooling will induce a lot of residual stresses, which usually occurs in shapes that have a non-uniform cross- section, such as I-beams and H-beams. While the finished product is of good quality, the surface is covered in mill scale, which is an oxide that forms at high-temperatures. It is usually removed via pickling or the smooth clean surface process, which reveals a smooth surface

Final Report on Hot Rolled Coils

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Page 1: Final Report on Hot Rolled Coils

GALVALUME ISPAT INDUSTRIES LIMITED

51

INTRODUCTION

HOT ROLL COILS

Hot rolling is a metalworking process that occurs above the recrystallization temperature

of the material. After the grains deform during processing, they recrystallize, which

maintains an equated microstructure and preventing the metal from work hardening.

The starting material is usually large pieces of metal, like semi-finished casting

products, such as slabs, blooms, and billets. If these products came from a continuous

casting operation the products are usually fed directly into the rolling mills at the proper

temperature. In smaller operations the material starts are room temperature and must

be heated. This is done in a gas- or oil-fired soaking pit for larger work pieces and for

smaller work pieces induction heating is used. As the material is worked the

temperature must be monitored to make sure it remains above the recrystallization

temperature. To maintain a safety factor a finishing temperature is defined above the

recrystallization temperature; this is usually 50 to 100 °C (122 to 212 °F) above the

recrystallization temperature. If the temperature does drop below this temperature the

material must be re-heated before more hot rolling.

Hot rolled metals generally have little directionality in their mechanical properties and

deformation induced residual stresses. However, in certain instances non-metallic

inclusions will impart some directionality and work pieces less than 20 mm (0.79 in)

thick often have some directional properties. Also, non-uniformed cooling will induce a

lot of residual stresses, which usually occurs in shapes that have a non-uniform cross-

section, such as I-beams and H-beams. While the finished product is of good quality,

the surface is covered in mill scale, which is an oxide that forms at high-temperatures. It

is usually removed via pickling or the smooth clean surface process, which reveals a

smooth surface

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MAJOR COMPANIES WHO SUPPLY HR

ISPAT INDUSTRIES LIMITED

JSW

ESSAR

ISPAT INDUSTRIES LIMITED

Ispat Industries Limited manufactures international standard hot rolled (HR) coils at its

Hot Strip Mill (HSM), situated at Dolvi in the state of Maharashtra, India. The production

of these coils involves the use of state-of-the-art equipment and manufacturing

processes that ensure products of the highest quality.

Ispat's HSM uses a combination of the advanced Conarc Process and Thin Slab

Casting technology, which facilitates the rolling of coils that are as thin as 1.2 mm with a

width of 1250 mm. These are superior to commercial grade cold rolled (CR) coils, and

are quite often a substitute for CR products in certain applications, due to their thinner

gauges and finer surface quality.

APPLICATIONS

Ispat's HR coils are used in the most critical engineering applications and also in certain

applications in the automotive sector. In addition, some of the value-added HR coil

products include steel for LPG cylinders, API grade, corrosion resistant steel, critical

structural application steel, boiler quality, auto grades, precision tubes and medium/high

carbon grades, among others.

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UNIQUE FEATURES OF ISPAT'S HR COILS

Superb surface quality

Superior width to thickness ratio

Ease in cold rolling

Accurate coil geometry

Thickness tolerance

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JSW

Vijaynagar Works

Vijaynagar works was the first Greenfield project in

world to use Corex technology to produce steel. On

February 18,2009 India largest Blast Furnace of

2.8MT capacity was commissioned here. With this

commissioning, JSW Steel become the largest

private sector steel producer in India with 7.8MT capacity. It is also in the advance stage

of setting up of 5MTPA state of the act Hot Strip Mill which will be commissioned in the

second half of fiscal 2009-10. The next phase of expansion taking the total production to

10mtpa plant at Vijaynagar Works is also under implementation. It will be commissioned

in fiscal 2010-11. This makes it among the fastest growing steel plant in the world.

It's eco-friendly approach has also led to the development of Vijaynagar into a modern

township. Enveloped by acres of greenery and maintained by JSW, Vijaynagar is

prospering by leaps and bounds. Be it education, career opportunity or women

empowerment, the Company's initiative has gone a long way in making Vijaynagar the

success that it is today.

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ESSAR STEEL

Hazira Facility

Their steel complex at Hazira, Gujarat, houses a 5.0 MTPA sponge iron plant, the

world's largest gas-based HBI producer. The plant provides raw materials for our state-

of-the-art 4.6 MTPA hot rolled coil (HRC) plant, the first and largest of India's new

generation steel mills. This plant is fed with inputs from three electric arc furnaces and

three casters. The complex's sophisticated infrastructure includes independent water

supply and power, oxygen and lime plants, a township and a captive port capable of

handling up to 8 MTPA of cargo with modern handling equipment like barges and

floating cranes.

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PRODUCTION PROCESS

Process Flow Diagram for HR Black to HR Pickled:

diagram 1

Hot Rolled

Black Strips

/ Coils

Slitting

Process

Shearing

Process

Pickling

Process Oiling

Strapping

/ Packing Dispatch

Process Flow Chart for CR Coil to CR CTL:

diagram 2

Cold Rolled Strips /

Coils

Slitting

Process

Shearing

Process

Strapping /

Packing Dispatch

HR Processing

In accordance with the Material Flow, the hot roll coils in HR Slitting Line to the required

Length and further certain Coils are pickled in hydrochloric acid medium by Push –

Pickling process to remove the scales from the hot rolled coils. The pickled coils are

then further slit to the requirement. The Slit Coils are further processed in HR Cut to

Length Line as per requirement. The cut Lengths are packed and dispatched.

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FORMS OF STEEL SUPPLIED IN THE MARKET

Coil

Plates

Sheets

Pickling

1. Coil Form

The steel produced in the company is always in the form of coil. Which can be always

processed further according to the requirement of the Dealer, Retailer and End User.

42,200 Tons per month is supplied in the region of Maharashtra. That is 48% from all

the form.

2. Plates

Steel produced in the factory are in the form of Coils but the requirements are not

always the same so the Coil are cut down into pieces according to the desired width

and Thickness to make it Plates. And they are cut down into plates so that they can use

it in the desired industry. 6,100 tons per month is supplied in the region of Maharashtra.

That is 7% from all the form

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3. Sheets

Steel produced in the factory are in the form of Coils but the requirements are not

always the same so the Coil are cut down into pieces according to the desired width

and Thickness to make it sheets. . And they are cut down into Sheets so that they can

use it in the desired industry. 38,950 tons per month is supplied in the region of

Maharashtra. That is 44% from all the form.

4. Pickling

Many hot working processes and other processes that occur at high temperatures leave

a discoloring oxide layer or scale on the surface. In order to remove the scale the work

piece is dipped into a vat of pickle liquor. The primary acid used is hydrochloric acid,

although sulfuric acid was previously more common. Hydrochloric acid is more

expensive than sulfuric acid, but it pickles much faster while minimizing base metal loss.

1,400 tons per month is supplied in the region of Maharashtra. That is 1% from all the

form.

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COILS USED FOR

Transport Industry

Welded Steel Tubes and Pipes

Cold - Rolling and Drawing

Line Pipe

Corrosion Resistance

Boiler Quality Plates

Tin Mill Black Plate

Pressure Vessels

Benefits

Pickling and oiling improves hot-rolled durability and workability at a low cost

A cleaner surface hot rolled product suitable for painting

Barrier to rust formation

PLATES USED FOR

Boiler & Pressure Vessels

Ship Building

Railways

Heat Exchangers

Oil & Petrochemicals

Marine Containers

Oil & Petrochemicals

Coal & Mining

General & Heavy Engineering

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SHEETS USED FOR

LPG Cylinder Fabricators

Railways

Automobiles

Marine Freight Containers

General and Heavy Engineering

OBJECTIVE OF THE PROJECT:

To study the Distribution Channel used by the Competitors for their Hot Rolled Coils in

the Region of Maharashtra.

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DATA RELATED TO THE SAMPLE SURVEY

SAMPLE SIZE

Dealers End User

Gange Pressings Ltd

Auto Line Press Component

Panse Auto Pvt Ltd

Carline Pressings Pvt Ltd

Press Tools

Pressisions Pressons

RETAILERS

Krishna Sheet Processors Pvt.Ltd

Anmol Steel Processors Pvt Ltd

Delta Iron & Steel Co. Pvt. Ltd

Akshanta Mercantile Pvt Ltd

Rohit & Company

Param Shakti Steel Pvt Ltd

Ratnesh Enterprice

Prestech Steels

Trimurti Steel Pvt ltd

Azincya Electrical Pvt Ltd

Shreeji Steels

Bharat Iron Syndicate

D. Pratap

Ashvi Trading Company

Chagan Mohan & Company

1. Essar Steel

2. Ispat Industries Limited

3. JSW

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DISTRIBUTION CHANNEL

As we can see the Distribution Channel we can find out that the Hot Rolled Coils are

manufactured and then send to the Stock Yard and from the Stock Yard and from

Stock Yard to the Traders. The Hot Rolled Coils are also send to the Traders. As we

can also see that the Traders receive the goods through Steel Service Center where

the goods are future processed according to the trader requirements. Another process

is where goods from Plant are send to the Steel Service Center and from there to the

Retail outlet and from the Retail Outlet to the Retail Customer (End User). Goods are

also send to the Retail outlets directly. These all transactions are done through the use

of trucks.

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DISTRIBUTION MODELS:

Model 1

In model 1 we can see that the goods manufactured in the plants are directly

transported to the traders.

Model 2

In model 2 we can see that the goods manufactured in the plants are directly

transported to the Steel Retail Shops.

Model 3

In model 3 we can see that the goods manufactured in the plants are directly

transported to the End User for direct uses.

PLANT TRADERS

PLANT RETAIL

PLANT END USER

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Model 4

In model 4 we can see that the goods manufactured in the plants are send to

the Stock Yards where the goods are stocked and according to the

requirements of the traders goods are released at their warehouse.

Model 5

In model 5 we can see that the goods manufactured in the plants are send to

the Steel Service Center. The role of SSC is that the goods are manufactured

in coil form and if the Traders or End User wants in some other form like

Sheets, Plates, and Pickling etc. All these processes are done here and then

send to the Traders and End User according to the requirements.

Model 6

In model 6 we can see that the goods manufactured in the plants are send to

SSE and from there it is processed in the required form and supplied to the

Retail Outlets according to their requirements and then the Retail Outlets sells it

to the End User .

PLANT STOCK YARD TRADERS

PLANT STEEL SERVICE CENTER TRADERS

PLANT STEEL SERVICE CENTER RETAIL END USER

END USER

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Model 7

In the model 7 we can see that the goods manufactured in the plants are

directly send to the Retail Outlets as this is the new concept in the Steel

Industry to supply directly to the Retail Outlets. Retail outlets are a concept

where the companies are trying to use the Just in Time concept where the End

User gets the goods in great speed. Retail outlets provide End User better

Associability.

PLANT RETAIL END USER

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Supply Chain Management

As we can see that the goods move in a systematic manner. Supply Chain means

supply from the Raw Material to the End User. Supply Chain reduces the unnecessary

handling cost, inventory cost and carrying cost of the goods. We can see that the goods

flow on the following manner:

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QUANTITY SUPLLIED IN TONS BY THE SAMPLE & IN WHICH FORM & QUANTITY

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TOTAL QUANTITY SUPPLIED IN TONS PER MONTH IN WHICH FORM &

QUANTITY

Sheets Plates Pickled Coil

Quantity Supplied in tons/ per month 38950 6100 1400 42200

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THIKNESS IN WHICH IT IS SUPPLIED TO DIFFERENT SECTORS

Auto(min) Auto(max) Machinery(min) Machinery (Max) Project & Construction (Min) Project & Construction (Max)

Thikness(mm)

Customer

Krishna Sheet Processors Pvt.Ltd 1.6 5 1.6 5

Anmol Steel Processors Pvt Ltd 1.6 20

Essar steel (Retail) 1.6 5 1.6 5

Ispat ( joint Service center) 1.6 10 10 12 10 16

JSW (Retail) 1.6 3 2 3

Delta Iron & Steel Co. Pvt. Ltd 1.6 3 5 12

Akshanta Mercantile Pvt Ltd 1.6 4 1.6 2

Rohit & Company 1.6 4

Param Shakti Steel Pvt Ltd 1.6 5 1.6 2

Ratnesh Enterprice 1.6 4

Prestech Steels 1.6 12 1.6 2

Trimurti Steel Pvt ltd 1.6 4

Azincya Electrical Pvt Ltd 1 20

Shreeji Steels 1 20

Bharat Iron Syndicate 1.6 3

D. Pratap 1.6 3 5 12

Ashvi Trading Company 1.6 5

Chagan Mohan & Company 1.6 3

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WIDTH IN WHICH IT IS SUPPLIED TO DIFFERENT SECTORS

Auto(min) Auto(max) Machinery(min) Machinery (Max) Project & Construction (Min) Project & Construction (Max)

Width(mm)

Customer

Krishna Sheet Processors Pvt.Ltd 1000 1550 1000 1550

Anmol Steel Processors Pvt Ltd 1000 1550

Essar steel (Retail) 900 1550 1500 1850

Ispat ( joint Service center) 1250 1550 1250 1550 1250 1550

JSW (Retail) 800 1250 800 1250

Delta Iron & Steel Co. Pvt. Ltd 1250 1800 1200 1800

Akshanta Mercantile Pvt Ltd 1250 1500 1250 1550

Rohit & Company 1250 1500

Param Shakti Steel Pvt Ltd 1250 1500

Ratnesh Enterprice 1250 1500 1250 1500

Prestech Steels 1250 1500

Trimurti Steel Pvt ltd 1250 1500 1250 1500

Azincya Electrical Pvt Ltd 1000 1500

Shreeji Steels 1250 1500

Bharat Iron Syndicate 1250 1800

D. Pratap 1250 1800

Ashvi Trading Company 900 1550

Chagan Mohan & Company 1250 1500

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WELCOME TO A WHOLE NEW WAY OF BUYING STEEL.

RETAIL OUTLETS

ISPAT INDUSTRIES LIMITED

ESSAR

JSW

MODELS USED FOR RETAIL OUTLETS BY THE COMPANIES ARE:

Model 2

Model 6

Model 7

PLANT RETAIL

PLANT STEEL SERVICE CENTER RETAIL END USER

PLANT RETAIL END USER

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ESSAR HYPER MART & EXPRESS MART

Essar Steel Hyper Mart

Retail business is changing the paradigm of purchase across the world. Essar Steel, the

flagship company of Essar Group, has always been a pioneer in providing innovative

solutions to serve customers better. Essar Steel hyper mart is one such step in this

direction.

India. Essar Steel hyper mart is a strong network of over 65 hyper marts and 15 express

marts.

We have a strong workforce of over 230 employees—across the country—who are

committed to meeting the requirements of small manufacturers, local fabricators and

engineering and construction companies who today buy steel from local intermediaries

or traders.

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At Essar Steelhypermart you can choose from a comprehensive range of flat steel

products for variety of applications.

The five Value propositions of Essar Steelhypermart are:

1. Trust of Essar Quality

2. Immediate Delivery

3. Transparent Pricing

4. Easy Contact ability

5. Pan-India presence

Welcome to a whole new way of buying steel.

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JSW SHOPEE

JSW ON RETAIL

In an endeavor to expand retail base and ensure the easy available of quality and

branded steel in all its market, JSW Steel plans to setup 200 exclusive JSW Shoppes

across the length and breadth of the country by 2010. It has launched JSW Shoppe at

Hubli and Jaipur.

Mr. Sajjan Jindal, vice chairman and managing director, JSW steel has inaugurated two

exclusive JSW Shoppe in Hubli, Karnataka on December 4, 2007 and target is to open

several more Shoppe in India.

The concept originated from the fact that the company wants the end consumer to get

the right quality of product at competitive prices at the right place. It will help in building

trust with the end user and provide them steel at their door-step.

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All technical specification and details on manufacturing ranges are available in JSW

Shoppe. Information of all types of JSW steel product, ranging from HR coils to Color

Coated Steel and Long Products would help in enhancing the awareness on wide usage

of steel among cross section of society & industries.

At JSW Shoppe, end consumer will also know about different application of different

steel products being manufactured by M/s JSW Steel through actual components and

pictures from Automobile, White Goods Sectors, and Construction.

NUMBER OF SHOPPES

State No. Of Shoppes

AP 2

Assam 1

Goa 1

Gujarat 2

Haryana 4

Karnataka 8

Kerela 1

Maharashtra 8

MP 1

Orissa 1

Punjab 2

Rajasthan 2

TN 6

UP 7

WB 4

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ISPAT INDUSTRIES LIMITED

ISPAT ON RETAIL

Ispat is also into the Retail Selling Concept to face the competition company has

decided to have 100 Retail outlets by the end of 2010. They have their retail outlets in

the Brand name of ―ISPAT CHOWK‖

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QUANTITY SUPPLIED BY EACH COMPANY TO THEIR RESPECTIVE RETAIL

OUTLET

Retail Sector (tons per month) JSW ESSAR ISPAT

Sheets 400 1000 2500

Plate 400 1000

Coil 2000 1250

Pickled 200 1250

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QUANTITY SUPPLIED BY EACH COMPANY TO THEIR RESPECTIVE RETAIL

OUTLETS IN MAHARASHTRA

ISPAT INDUSTRIES LIMITEED 4 OUTLETS

ESSAR STEEL 6 OUTLETS

JSW 8 OUTLETS

Retail within Maharashtra (tons per month) JSW ESSAR ISPAT

Sheets 3200 6000 10000

Plate 3200 6000

Coil 12000 5000

Pickled 1600 5000

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FUTURE IN RETAIL BY THE END OF 2010

ISPAT INDUSTRIES LIMITEED 100 OUTLETS

ESSAR STEEL 300 OUTLETS

JSW 200 OUTLETS

QUANTITY REQUIRED BY THE END OF 2010 BY EACH COMPANY TO MEET THE

DEMAND

Retail Sector by end of 2010 (tons per month) JSW ESSAR ISPAT

Sheets 80000 300000 250000

Plate 80000 300000

Coil 600000 125000

Pickled 40000 125000

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Recommendation

Hot rolled coils are the oldest product in the steel market. So the steel was

supplied the traditional way.

Now companies have realized that to survive in the Competition they have to

follow the new concepts of Just in Time, Kanban Kaizan & Total Quality

Management.

Companies can only make good profits that have a shorter and faster Distribution

Channels.

Customers need the product in the shorter period and at a greater quality.

Companies are now entered the Retail business of selling steel which was one of

the greatest moves in the steel sector.

The future of steel really lies in the proper management and planning of the each

Retail outlet which will enhance the distribution channel.

Ispat Industries Limited should concentrate on Thickness of 1.6 mm to

5mm for the Automobile Sector.

Ispat Industries Limited should concentrate on Width of 1000mm to

1550mm for the Automobile Sector.

Ispat Industries Limited should concentrate on Thickness of 1.6mm to

12mm and Width of 1000mm to 1850mm for Machinery Sector.

Conclusion

Steel sector was seen as the Production and Selling era where companies produced

and transported their goods as required by Customers. But now the time has changed

and companies have realized that to beat the competition companies have to supply the

goods Just in Time. So the steel sector is experiencing the whole new concept of setting

up Retail Outlets and selling the products and reaching the Customer rather then

Customers reaching them.

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