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INDUSTRY PROFILE

INTRODUCTION

Industry is a massive employment agent providing opportunities, board basing

entrepreneurship and securing distribution of economic wealth.

Industry occupies a place of importance in the economy as potential caretakers of economic

resources in particular, the labor resources as they provide employment for substantial work

force.

They have strategic role to play in the economic development of counties and remain

important in the economics of the more highly industrialized countries.

Sponge Iron is a recognized alternative to steel scrap as a raw material for the manufacture of

various steel products.

The twin issues of rapid depletion of Coking Coal reserves and the scarcity of indigenous

scrap, made the Government of India support production of sponge iron in the country.

To boost the growth of the industry a major thrust was given by the Government of India by

providing the manufacturers the following benefits:

De-licensing,

Firm linkages,

Allocation of natural gas

Financial support.

This lead to an immense growth of the sponge iron industry in India, from a meagre capacity

of 30,000 tons per annum in the year 1980-81 it grew to millions of tones.

Today, India ranks No.1 globally in the production of Sponge Iron.

The complete inbuilt facility for production of sponge iron, which is further, utilized in the

manufacture of various iron/steel products such as TMT Bars, D.I. Pipes, etc.


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However since the last survey, the domestic sponge iron industry has undergone

dramatic changes such as

India has emerged as the worlds largest producer of sponge iron.

The coal based sponge iron segment has witnessed rapid growth in numbers.

This has led to increase in both capacity and production (coal based).

Significant expansion programs launched by existing units (both coal and gas).

Upstream integration of existing steel producing units.

Emergence of sponge iron units with planned foray into steel making.

ABOUT THE STEEL INDUSTRY

The story of the industry and its growth begins with the iron and steel. Steel industry is

booming in the whole world. The increasing demand for it was mainly generated by the

development of projects that has been going on along the world, especially the infrastructural

works and real estate projects that has been on the boom around the developing companies.
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Steel is an alloy of iron usually containing less than 1% carbon. It is used most frequently in

the automotive and construction industries. Steel can be cast into bars, strips, sheets, nails,

spikes, wire, rods or pipes as needed by the intended user.

The process of steel making has undergone many changes in the 20th century based on the

political, social & technological atmosphere. In the 1950s and 1960s demand for high

quality steel encouraged the steel making industry to produce large quantities.

The energy crisis of the 1970s made thermal efficiency in steel mills a priority. The furnaces

used in integrated plants were very efficient, however, the common production practices

needed to be improved. The large integrated plants of the 1950s and 1960s tended to

produce steel in batches where iron ore was taken from start finish. This causes someequipment was in use. To help reduce energy use, continuous casting methods were

developed by keeping blast furnaces continuously feed with iron ore, heat is used more

efficiently.

HISTORY OF STEELMAKING

Ancient steel: Steel was known in antiquity, and may have been produced by managing

bloomeriesiron-smelting facilitiesso that the bloom contained carbon.

The earliest known production of steel is a piece of ironware excavated from an

archaeological site in Anatolia (Kaman-Kalehoyuk) and is about 4,000 years old. Other

ancient steel comes from East Africa, dating back to 1400 BC.

In the 4th century BC steel weapons like the Falcata were produced in the Iberian Peninsula,

while Noric steel was used by the Roman military. The Chinese of the Warring States (403

221 BC) had quench-hardened steel, while Chinese of the Han Dynasty (202 BC 220 AD)

created steel by melting together wrought iron with cast iron, gaining an ultimate product of

carbon-intermediate steel by the 1st century AD.


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WOOTZ STEEL AND DAMASCUS STEEL

Evidence of the earliest production of high carbon steel in the Indian Subcontinent was found

in Samanalawewa area in Sri Lanka Wootz steel was produced in India by about 300 BC.

Along with their original methods of forging steel, the Chinese had also adopted the

production methods of creating Wootz steel, an idea imported into China from India by the

5th century AD.

In Sri Lanka, this early steel-making method employed the unique use of a wind furnace,

blown by the monsoon winds, that was capable of producing high-carbon steel. Also known

as Damascus steel, wootz is famous for its durability and ability to hold an edge.

It was originally created from a number of different materials including various trace

elements. It was essentially a complicated alloy with iron as its main component.

Recent studies have suggested that carbon nanotubes were included in its structure, which

might explain some of its legendary qualities, though given the technology available at that

time, they were produced by chance rather than by design Natural wind was used where the

soil containing iron was heated up with the use of wood.

The ancient Sinhalese managed to extract a ton of steel for every 2 tons of soil, a remarkable

feat at the time. One such furnace was found in Samanalawewa and archaeologists were able

to produce steel as the ancients did long ago.

SPONGE IRON

Sponge iron is a metallic product produced by direct reduction of iron ore or pellets in the

solid state (i.e., without the material going into the liquid phase as is the case in the blast

furnace, which is the conventional route for converting iron ore into iron).

It is also known as Direct Reduced Iron (DRI). The final product after such direct reduction

contains a large percentage of metallic iron with levels of metallization unto 90% and the

balance being some amount of reduced iron oxide and the gangue in the ore.

The Sponge Iron has a highly porous structure when viewed under the microscope and hence

this product is called Sponge Iron.


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USE OF SPONGE IRON

Sponge iron is a part-substitute for steel scrap in the manufacture of steel scrap in the

manufacture of steel by electric arc furnaces and induction furnaces (i.e., the secondary

sector).

Steel melting scrap is primarily required for using as a feed material in aluminium steel

plants, which also use scrap for melting in electric arc furnaces/induction furnaces for

manufacturing steel.

INDUSTRIAL EVOLUTION OF SPONGE IRON

In India, significant additions to iron and steel capacity were made during the 50s & 60s bysetting up new integrated steel plants at Rourkela, Bhilai, Durgapur and Bokaro, which

involved large investments in the public sector.

These plants are based on the conventional route of iron making, using blast furnaces. While

the initial growth has been quite impressive, the 70's witnessed constraints in further growth

due to the deteriorating quality as well as limited reserves of metallurgical 'coking' coal, the

essential feed material for blast furnace and the spiraling capital costs in building

economically feasible sizes of integrated steel plants.

In advanced countries, and more so in the developing countries the need to find alternative

technologies which do not require 'coking' coal for the production of iron and steel was being

felt.

However, considering its potential as relevant to the raw material situation, the Government

of India decided to establish a semi-commercial 'Demonstration Plant' so that raw materials

available in the country could be extensively tested and processed regimes developed.

It was envisaged that the demonstration plant would provide the necessary interface for

developing


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It could not fulfill industry expectations at that time in being used as a supplementary

material for feed / alternative to blast furnaces. The main reasons were

The gas based sponge iron plants could operate only where cheap (subsidized) natural

gas was made available.

Sponge iron furnaces could not be developed into a single entity to produce liquid

metal. Increased scrap availability that was being traded world wide as a furnace raw

material.

Blast furnace capacities increased from 0.7 million tons per annum in 1960s to over 4

million tons per annum. Today the largest gas based sponge iron module available is

approx. 2.7 million tons per annum.

GROWTH OF INDUSTRY

Since the commissioning of the first sponge Iron unit in 1980, it has been a period of notable

accomplishments for Sponge Iron India Limited which has played vital role in developing

and establishing coal based DR Technology. Establishment and up gradation of coal based

Sponge Iron technology in the Country, innovations in the usage of Sponge Iron and its

conversion into Steel, conversion of waste material into value added products, visualization

of new concepts for updating technology and the unique expertise in total consultancy for

establishing new Sponge Iron plants have all contributed to the evolution of Sponge Iron

India into a 'Technology Corporation'.

ROLE OF DRI (DIRECT REDUCED IRON) IN INDIAN ECONOMY

Due to acute shortage of scrap worldwide, sponge iron has become the only alternative feed

stock for secondary steel making and hence its demand is growing day by day.

This is a abundantly reflected by the manner in which he price it commands in the market.

Reducing of iron in to form of round shaped structures called as sponge iron by 2 methods of

one coal based and another gas based and coal based reduction is popularly known as D.R.I,

which forms the input for steel manufacturing industry.

The steel is today considered as the backbone of India economy.


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The growth of economy has a direct relation with the, Demand of steel. With the present steel

intensity index, Considering the GDP projection by the Govt. of India, growth of steel

demand will be around 11% annually.

Manufacturing process of sponge iron

The reduction of iron ore either lump ore or pellets can be achieved by using either carbon

bearing material, such as non-coking coal or a suitable reducing gas in the form of reformed

natural gas.

The processes employing coal are known as solid-reactant or coal-based processes, while

those employing reducing gasses are known as gas-based processes. Sponge iron produced

by gas-based process is normally hot briquette and hence it is also known as Hot Briquette

Iron (HBI).

The choice of coal-based process depends largely on the availability of the reducing agent

and iron ore/pellets as the case may be. Gas based Sponge Iron Plants are not only capital

intensive but are also of large capacity in the range of 1.0 to 2.0 million TPA, where as coal

based Sponge Iron Plants are less capital intensive and can be smaller in size to suit the

investment requirement.

PRODUCTION OF STEEL

It is universally accepted that Indian economy is growing at a very high rate presently and the

demand for steel is also showing an upward trend.

No. of units in operation - India 283

Now DRI units have spread over the states of Orissa, Jharkhand, Chhattisgarh, West Bengal,

Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat and Goa.

India is the largest producer of Sponge Iron in the worldIn the year 2006


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Graph No - 01

World Major Sponge-Iron Producers

India- 13.9millionton

Venezuela - 6.2 million ton

Iran - 4.3 million tonMexico - 4.5 million ton

As per the National Steel Policy issued by the Ministry of Steel India will produce 110

million tons of steel by 2020.

The requirement of Sponge Iron as metallic will be 30Million tons.

Projection for metallic requirement:

Year Route Melting Scrap DRI

2010-11 Electric Furnace Route 14 million 18 million

But availability of scrap is not likely to reach 11 million.

Today India produces 13.9 million tons of sponge iron, out of which 4.2 million ton is gas

based and remaining 9.7million ton is coal based.

0

2

4

6

8

10

12

14

16

India Venezuela Iran Mexico


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India has a proven reserve of 410 million ton of high grade iron ore, another 440 million ton

of high grade iron ore which will be established. India has total 9992 million ton of iron ore

reserves (as per IBM report of 1995).

India has sufficient non-coking coal through of high ash low fixed carbon grade. Coal is used

as a reducent for sponge iron making in the furnace.

The availability of scrap of required quantum is unlikely and therefore scraps needs to be

replaced more and more by DRI.Local supply of scrap is diminishing as generation of scrap

in India due to improvement of technology is getting continuously minimized.

As per World Steel Dynamics (WSD) the Global shortage of scrap will reach 68 million

tons in the year 2010.That means the scrap price will go up and availability will be a

problem. Today the international price for scrap is around US$ 390.00.

Due to soaring price of iron ore and coke, blast furnance is being set up in the countries

where iron ore or coking coal is available.With resources available in IndiaSponge Iron

Electric Furnace Route is the most viable option for steel making.

We must produce steel at a cheaper cost to remain competitive and control over domestic

market. DRI based steel making is therefore the only answer.

CURRENT RATE OF GROWTH

The domestic average growth rate has been 21 per cent in the last three years while the global

growth rate stands at 10 per cent. And the major growth is in the coal-based sector as gas is in

short supply.

FUTURE OUTLOOK OF THE INDUSTRY

Sponge iron will play a key role in the development of steel sector as per national steel

policy. The industry is very well placed to meet the fast growing demand of metallics.

Sponge iron is the substitute for steel melting scrap.


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Scrap availability is getting difficult and the coking coal reserves are limited. So steel

industry has to depend heavily on sponge iron .India has an installed capacity of 170 lakh

tonne at present.

And there are at least 160 more plants in various stages, from planning to implementation. So

we expect that the installed capacity will go to 3 million tonne in the next five years. Existing

sponge iron manufacturers are going in for expansion in addition to large number of

Greenfield projects which are in the pipeline.

REASON FOR MUSHROOMING OF MINI SPONGE IRON PLANTS

A 60,000 ton-a-year plant without power generation will cost Rs 24 to 25 crore and a small

plant of 50 ton-per-day will cost Rs 5 to 6 crore. It is a small investment and that is why

people are going in for small plants. The margins are also reasonably good.

They are able to maintain prices but not quality. There is no process control and pollution is a

main concern as most of them go for coal-based plants and not gas, which is a clean fuel but

which costs more and availability poor.

Ninety per cent of the world production is gas-based. Out of the 10 per cent coal-based

plants, India accounts for 78 per cent.

MAJOR USERS OF SPONGE IRON

We cater to electric arc furnaces and induction furnaces. Gas-based plants cater to alloy steel

makers and steel plants as they need better quality.

Some of the steel plants have started using sponge iron in blast furnace also to cut down the

use of scrap or coking coal. This has given a further boost to the demand of sponge iron.

MAJOR PROBLEMS CONFRONTING SPONGE IRON

MANUFACTURERS

Our biggest problem is the availability of critical raw materials, iron ore and coal. Gas

availability is very difficult. There has been an unprecedented rise in iron ore prices in the


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last three years. We want export of all high-grade iron ore banned and mining leases be made

available to private sector so that prices can come down to a realistic level.

We hope the government will accept the recommendations of the R.K. Dang committee on

iron ore policy.

CURRENT DEMAND-SUPPLY SITUATION

The demand-supply scene is pretty comfortable. Major power cuts in states like Uttar Pradesh

and Punjab is affecting operation of induction furnaces which has brought down the demand

and prices along with it.

This is a temporary phenomenon, but we expect the demand to pick up and prices also to pick

up in the near future.

The sponge iron industry looks forward to improvement in the supply of raw materials

together with better infrastructure facilities to meet the fast growing demand of the steel

industry.

FUTURE OF THE INDUSTRY

Worldwide, recent trends in demand for Steel, due to real estate growth and demand for steel

in china for the prestigious Olympic games all these have realized the growing potential in

the Secondary route- Electric Steel making.

With reduced availability of scrap and the limited scope for further growth in HBI, the only

answer for providing 'Metallics' to this growing sector lies in coal based DRI. And when it

comes to coal based DRI, Sponge Iron India Limited, the 'Technology Corporation', can

provide cost effective solution.


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GOVERNMENT ASSISTANCE TO INDUSTRY

Government assistance can be availed through the SIIL (sponge iron India ltd).The spectrum

of SIIL services include:

Comprehensive testing of raw materials for the process.

Preparation of project report for an investment decision.

Basic and detailed engineering of the reduction unit and all the auxiliaries from raw

material to preparation to storage and handling of finished products.

Preparation and selection of mechanical, electrical and instrumentation equipment

including refractories.

Inspection of equipment to ensure compliance of specifications and for meeting the

required standard from operational point of view.

Assistance in supervision of start-up and commissioning.

Scheduling and monitoring the implementation of project with assistance in trouble

shooting during erection and commissioning.

Assistance in commissioning the plant and optimizing the plant operations.

Full performance guarantees for achieving rated capacity utilization.

COAL-BASED AND GAS-BASED

PROCESSES FOR MANUFACTURE OF SPONGE IRON

The reduction of iron ore either lump ore or pellets can be achieved by using either carbon

bearing material, such as non-coking coal or a suitable reducing gas in the form of reformed

natural gas. The processes employing coal are known as solid-reactant or coal-basedprocesses, while those employing educing gasses are known as gas-based processes. Sponge

iron produced by gas-based process is normally hot briquette and hence it is also known as

Hot Briquette Iron (HBI). The choice of coal-based process depends largely on the

availability of the reducing agent and iron ore/pellets as the case may be. Gas based Sponge

Iron Plants are not only capital intensive but are also of large capacity in the range of 1.0 to

2.0 million TPA, where as coal based Sponge Iron Plants are less capital intensive and can be

smaller in size to suit the investment requirement.


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COMPANY PROFILE

BACK GROUND OF THE COMPANY

RAYEN STEELS PVT limited is located near Haraginadoni village about 16km far from

Bellary and 5 km far from Kudithini in the state of Karnataka. The plant is located on a plant

of land measuring about 38 acres.

Within the short span of time it has achieved an annual turnover of 30 Crores.

The name Rayenis derived from a roman language meaning flower, it was incorporated at

the time when there was a raising demand for steel in the global market, it produces Sponge

iron an intermediate form of Iron Ore and Steel, though it doesnt cater to the international

market, definitely the growth of Indian economy led to the development of infrastructure for

which it caters to.

Rayen Steels has been established on 25th Feb 2006 and it has started its commercial

production on 20thMay 2006.

Starting with the initial investment of 14crores, the steel plant was producing 100 tonnes of

sponge iron per day, which has increased to 250 tonnes in 2008.
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VISION

To set up an integrated steel plant of international standards and offer best steel to the global

market and stand ahead among the steel manufacturers.

MISSION

To cultivate high standards of business ethics and Total Quality Management (TQM) for a

strong corporate identity and brand equity.

OBJECTIVES

The following are the objectives of the Rayen Steels (P) Ltd.

The aims at the fulfilment of the required industrial development in India.

Committed to delivery products and services to satisfy the need of the customer.

To actively involve people to contribute towards high productivity through team work

and innovation.

It aims at the training and production of skilled personal.

It aims to contribute towards the economy of the country.

It aims to provide employment to people directly by the company and indirectly

through onside contracts.

Aims to quality maintain and to compute at the global markets.

To have technology know-how.

To manufacture cost effective quality Sponge Iron.

To establish supremacy in Indian Automotive Iron Companies.

To achieve highest rate of satisfaction among employees.

To produce zero defect quality Iron.

To maintain good relation with suppliers, dealers and customers.

To incorporate special plans and schemes to gain employees satisfaction.


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QUALITY POLICY

Rayen steels Limited is committed to comply with the requirements of the Quality

Management System and to achieve continual improvement in its operations through

it for the production and marketing of sponge iron.

In order to attain this, the company shall strive to achieve its quality objectives

through annual business plans and review the quality policy periodically to ensure its

continuing suitability to company operations.

NATURE OF THE BUSINESS CARRIED

Rayen Steels Pvt. Ltd, is a company which involves in producing sponge iron as a raw

material for the steel manufacturing industries.

This product was used initially in Induction furnace as a reducing agent for reducing Carbon

in the scrap. Later on Sponge Iron is used as a raw material along with scrap.

It produces high quality sponge iron. It supply high grade material of Sponge Iron to major

steel industries such as Ispat Industries Bombay, JairajIspat Hyderabad, and so on


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PRODUCT PROFILE

The sponge iron plant at Bellary produces the following product:

Main product: Sponge Iron

Byproduct:Slag,Blastfurnacegas

The quality of the Sponge Iron is determined by its Silica content. The more the silica content

more the quality, the silica ranges from 1 percent to 3.5 percent. The company manufactures

three grade of Sponge Iron, they are as follows:

Fines (Injection coal)

A- Grade

B- Grade

A-grade and B- Grade is used in the manufacture of steel. It is produced by the

Integrated Steel Plants (ISP) for captive consumption in the manufacture of steel and

exports. Part of production is also divers tic market. Used for making casting and isproduced in the mini Blast Furnace Units. .


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Requirement of raw materials and their possible source of supply are indicated in the

table given below

Sl.No. Raw materials Sources of Supply

1. Lump iron ore

(5mm-20mm)

Sandur

2. Coal Singareni collieries/south Africa

/Australia/Indonesia

3. Dolamite Dronachalam

Table 2.1 showing the raw materials and their sources of supply

AREA OF OPERATION

As Rayen steels is a small scale industry it function only in the national market sells

production capacity then they go for export in the best price.

COMPETITORS INFORMATION

The major competition they face is from the local manufacturers. And a small range of

competition from other national firms.

The local competitors are:-

a) HOTHUR STEELS

b) PRAGATHI

c) SARJELLI STEELS

d) BINACA STEELS

e) BELLARY STEELS & ALLOY LTD

f) GAYATHRI METELS


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INFRASTRUCTURE FACILITIES

38 Acres of land

Building in square feet:- 40000 Sq.feet

Machinery worth Rs:-2crore.

Furniture Worth Rs: - 1lakhs.

Computer aided Machinery worth Rs:-3lakhs.

L&T JCB Rs:-18 lakhs.

New technology adoption.

Killen & Coolers.

Stock House 10,000 Tonnes.

Storage Shed 180 Tonnes.

Heavy machinery like Hitachi, Jeb, Roller.

WATER FACILITIES

There is a hot well and cold well of supply and return water storage from cooler where

sponge iron is cooled separately. Pumps are provided for circulation, cold water to cooler

and hot water through cooling tower. The other requirements like for cooling compressor etc.

is met from the ground water reservoir directly. An overhead tank is provided in the plant to

meet the water requirement for about half an hour during emergency, like power failures, fire

etc. This overhead tank has one separate compartment to store and supply drinking water to

the plant& personnel.

COMPRESSED AIR FACILITIES

To meet the demand of compressed air, two water cooled compressor of 400 cfm and at a

discharge pressure of 6 kg/cm sq is installed. This compressed air is used for operating the

grease pumps and the pneumatic seals to kiln and cooler.

For distribution of compressed air to different consuming points, an adequate distribution net

work of pipelines has been provided.


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VENTILATION AND AIR CONDITIONING FACILITIES

The main system of ventilation for most of the buildings is naturally ventilated. Mechanical

ventilation is provided in such premises where natural ventilation cannot provide the desired

effect. The control room shall be centrally air conditioned. Local exhaust fans are provided

where necessary for removing objectionable fumes and vapors. De-dusting system has been

considered for removing dust generated at transfer points in the handling, transportation of

raw materials and finished products. Exhaust ventilation are provided for the switch gear

room of the main step down sub-station, transformer station, store room and toilets.

POLLUTION CONTROL FACILITIES

WATER POLLUTION

Adequate effluent handling, treatment and disposal measures have been taken to conform to

prescribed norms. The waste water after treatment would be discharged into the storm water

drainage system, chemical wastes from laboratory, will be neutralized before discharging into

the sanitary sewerage treatment system.

A) Noise pollution controlDue to technological reasons, it may not be practicable to entirely eliminate the noise.

However, noise levels could be brought down to the acceptable level wherever

possible. The major equipment of high noise production can be identified as ID fan,

de-ducting fan of Sponge Iron Plant, compressors in compressed air station,

ventilation fans, etc.

Various measures like reduction of noise at source, providing acoustic lagging for theequipment, isolating the noise producing equipment etc would be adopted to reduce

the noise pollution from this equipment. The compressors in the compressed air

station would be provided with suction side silencers.

Ventilation fans would generally be installed in enclosed premises. Supply ducts and

grills on the ventilation and air conditioning system would be suitably sized for

minimum noise level.


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B) Dust emissions and control

From the transfer points at crushing, screening, cooler discharge and product

separation, some quantity of dust is eliminated. To avoid the pollution of the

environment, the de-dusting points are provided at these three places. In this system,

the suction ducts are provided at various points and connected to a bag filter house.

One ID fan is used to create suction and the dust particles collected in the hopper are

drawn out with the help of a rotary valve, for humidifying the dust to avoid flying of

the same.

POWER REQUIREMENT FACILITIES

The power requirement of the proposed Sponge Iron Plant is estimated as 1500 KVA on 30

minute maximum demand arsis with an annual energy consumption of 5 million KWH. HT

power shall be made available at plant site by KEB.

One set of 500 KVA rating at 415 V, 50 Hz is provided to cater to the emergency power

requirement of vital units of the plant requiring uninterrupted power supply. The DG set will

be complete with auxiliaries like AMF panel, day oil storage with transfer pumps etc, and

necessary instrumentation.


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Work Flow Model

1. Raw material

2. Screening

3. Crushing

4. Store house

5. ABC Unit (After burning chamber )

6. Klin

7. Cooling house

8. Production house

Raw material Screening Crushing

Store house

ABC Unit (After

burning

chamber

Klin

Cooling house Productionhouse


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The following chart show entire process

Chart 2.1 Chart showing production process

STOCK HOUSE (RAWMATERIALS)

FEEDBELT

KILN MAIN

DRIVE

PROCESS

COOLING

SPONGE

IRON

LABTESTING

CD BELT

PRODUCT HOUSE


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The main component in this production process is Kiln. The following are main components

are included in the kiln.

Kiln main drive: It is used for rotating kiln.

Cooler main drive: It is used for cooling after all process the products should be

cool.

Sheller fan: it is used for controlling temperature that is increasing or decreasing the

temperature.

Lube compressors: it is used for coal feed into Kiln by pressure.

Iron weighing feed: it is used for transfer raw materials into kiln.

ESP ID fan:it is used for maintaining a pressure.

Feed coal range:it should be range +14-1

CB Fan: it is used for output increasing to temperature RACF: Rotary Air Lock of

System.


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ORGANIZATION STRUCTURE

MANAGING

DIRECTOR

EXECUTIVE

DIRECTOR ADMIN

BORAD OF

DIRECTORS

LABORATORY

DEPARTMENT

QUALITY

DEPARTMENT

STORES & RAW

MATERIALS

DEPARTMENT

PRODUCTION

HOD

HUMAN

RESOURCE

HOD

MARKETING

HOD

FINANCE

HOD

EXECUTIVE

DIRECTOR PLANT


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OWNERSHIP PATTERN OF THE COMPANY

Name Designation Age Qualifications Experience and Expertise

Mr.Obul

Reddy. P

Director 65 B.Com, M.B.A, Over 18yrs in High Power

transmission line constructions

in Karnataka

Mr.Prakash. S Director 63 B. Tech

(Metallurgy)

About four decades in Iron and

steel Industry.

Mr.Manohar. A Director 68 B.com, MBA Over 35 years in commercial

Bankig, Human Resources and

financial Management with state

Bank of India.

Mr.Ramu .G Director 67 B. Tech (chem),

MBA.

Over 15yrs in Sales and

Distribution of UB spirits in

entire north Karnataka region.

Table 3.1 Table showing ownership pattern of the company


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FUNCTIONAL DEPARTMENTS

The following are the various departments playing a vital role in the success of the Rayen

Steels Pvt Ltd. They are as follows:

Finance Department

Marketing Department

Human Resource Department

Production Department

Stores & Raw Materials Department

Quality Department

Laboratory Department

Functional Department Chart

Finance

Department

Marketing

Department

Human

Resource

Department

Production

Department

Stores &

RawMaterials

Department

Quality

Department

Laboratory

Department


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FINANCE DEPARTMENT

Finance department is that managerial activity which is concerned with planning and

controlling of the firms financial resources. The manager of this department is Mr.

S.R.Kolkar

Account and cash section

In this department, the accounts section maintains all the transactions related to the

factory dealings. The sale accounts, purchase accounts, etc are maintained and this

department prepares P&L account, Balance sheet, etc.

The accounting system followed by RSPL in such a way that there will be separate

ledger has kept for each customer. As the concern will deal with many customers,

there will be a separate ledger maintained in the name of each client and sometimes if

the client deals with many varieties of products for that will be a separate file has been

maintained

Capital cost:

The esteemed capital cost of plant is Rs. 1473.33 lakhs (inclusive of taxes and duties).

This includes land, civil/structural work; the cost has been arrived based on prevailing

rates for estimated quantities.

As for plant and machinery it is based quotations/offers received for similar plant of

our other clients/s. Apart from all directors investments, this project was financially

supported by Andhra Bank, at the ratio of 25:75 respectively.

From the bank finance 80% is allocated to project cost and 20% towards working

capital. The monthly average turnover is 5 crore


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Structure of the Finance Department

Finance HOD

Manager

Supervisor

Staff


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SALES FOR THE PERIOD APRIL 2009 TO JULY 2009

Graph 4.1 Showing sales for the period April to July

0

1000

2000

3000

4000

5000

6000

7000

LUMPS FINES

Series1


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SALES FOR THE PERIOD AUGUST 2009 TO NOVEMBER 2009

Graph 4.2 Showing sales for the period August to November

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

LUMPS FINES

LUMPS FINES


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SALES FOR THE PERIOD DECEMBER 2009 TO MARCH 2010

Graph 4.3 Showing sales for the period December to March

0

2000

4000

6000

8000

10000

12000

LUMPS FINES

LUMPS FINES


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MARKETING DEPARTMENT

Introduction

Marketing is a social process by which individuals and groups obtained what they need andwant through creating, offering and freely exchanging products and services of value with

others.

Aim of marketing

To know and understand the customer so well that the product or service first him and sells

itself. Ideally marketing should result in customer who is ready to buy. All that should be

needed then in to make the product or service available.

Features of marketing

It is consumer oriented.

It starts and ends with consumer.

It is goal oriented.

It is a continue process.

It is a guiding element of business.

Distribution channels

It is a channel of distribution group of individuals and organization that direct the

flow of products from producers to customers. The main function of this demand is to find

out the appropriate ways through which goods are made available to the market.

There are so many marketing channels.

Vertical marketing system.

Horizontal marketing system.

Multi-channel marketing system.


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In the last type of channel there are other distribution channels like

DIRECT MARKETING CHANNEL

Manufacturer Consumer

1 level marketing channel

Manufacturer Retailer Consumer


Manufacturer Whole seller Retailer Consumer


Manufacturer Whole Seller Jobber Retailer Consumer

Objective

The main objective of this department is to take care of the sales and dispatching them

properly and also to look after the central excise matters pertaining to the sales of the

department.

Policies

1. Keep a watch on the market conditions.2. Branch officials and agents should always be in touch with customer.

3. RAYEN always prefer to have direct contact with the plot owners for timely supply of

raw materials.

4. Orders are always taken on first cum first basis and credit sales are negotiated only

after knowing buyers credibility and prior approved of management.

5. The transporter approaches marketing section for billing and other various document

required as per government rule.


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Practices/Procedure

1. Only those employees who know the local language are sent to the customers.

2. Marketer makes the customer to know the quality checks done at RAYEN.

3. The customers financial strength and weakness and requirements are known to the

branch officers and agents.

Structure of the Marketing Department

HEAD OF THEDEPARTMENT

MANAGER

SUPERVISORS

STAFF


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HUMAN RESOURCE DEPARTMENT

Human resources management involves researching and addressing staffing needs, hiring and

training the best employees and making sure that these employees turn out to be outstanding

performers. It also includes dealing with performance issues and ensuring employees

personal and management practices conforms to various regulations.

In short Human resources management, this is of immeasurable value for an organization.

The HRM department is entrusted with the vital function of keeping employees happy and

thus assisting in enhance the productivity of the company.

Any organization with manpower as its chief capital is a treasure of talent. It is the HR

department which acts as the key to unlock, identify, develop and utilize employee skills and

talents to further individual as well as organizational goals.

The chief functions of the HR department Training and Development change the

management, salary and benefits, industrial and employee relations and performance

appraisal.

The HRM department here at Rayen steels Pvt Ltd., considers the employee as the foremost

and the major resources of the company. Upliftment of employees growth are at the center of

organization philosophy of growth, which aims at providing a career in which the individual

can make at the same time better standard.

Company has taken care of employees welfare by Providing accommodation medically and

medicalreimbursement to self and family subsidized canteen facility to all employees, freetransportation to their residence to the work. Place.

Company is having officers, club members of their facilities meet and participating in various

activities of recreations.


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Company plans to increase turnover per employee through

Increase production

Increase productivity

Maintain / Improve quality

Cost efficiency

Adhering to timely suppliers

Reduction in wastages

Structure of the Human Resource Department

HEAD OF THE

DEPARTMENT

MANAGER

SUPERVISORS

STAFF


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PRODUCTION DEPARTMENT

The raw materials and the technology are to be sourced from other areas; this is a specialized

field where in the production of steel, a definite layout of the process has to be established.

These are charged into a rotary kiln in requisite proportion along with some dolomite.

Coal plays a dual role in the process by acting as a reductant as well as a fuel for providing

heat to maintain the requisite temperature inside the kiln at 950-1050C. The reduction process

occurs in solid state. The crucial factor in this reduction process is the controlled combustion

of coal and its conversion to carbon monoxide to remove oxygen from the iron ore


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PRODUCTION PROCESS

Sponge Iron is iron ore reduced directly in solid state using coal gas, natural gas or coal as

reductants and is also known as Directly Reduced Iron (DRI). The basic raw materials used

in the production of Sponge Iron are Non-coking coal, Iron ore, and dolomite, with the

availability of new technology they are able achieve greater efficiency with following

advantages.

Uniform known composition and Low levels of residuals/tramp elements

Capability to maintain phosphorous level in steel within 0.002% and sulphur in

sponge manufacturing

Low content of dissolved gases, Uniform size and higher bulk density as compared toscrap

Capability of forming protective cover of foamy slag in the bath

Chemical Composition

Constituent Percentage %

Total Iron 65-67%

Sio2+al2o3 2-3%Cao+mgo 0.5-1%

Sulphur 0.02%max

Phosphorous 0.04%max

Table 4.1 Showing the chemical composition of iron ore

Physical Composition

Constituent Percentage %

Size 5-20mm

Shatter Index +95%

Tumbler Index +88%

Abrasion Index +5%max

Reducibility Index +94%

Thermal degradation Index 5%

Table 4.3 showing the physical composition of the iron ore


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Various technologies that can be used are:

Gas Based Technologies

Coal based process

Fluidized Bed Technologies

Technologies using hydrogen as reductant, or using carbon monoxide as reductant

Technologies using mixture of both hydrogen and carbon monoxide as reductant

Static or moving bed technologies using mixed gas as reductant

Coal-Based Process

This is the process that the company uses to produce sponge iron. This process utilizes non-

coking coal as reducing agent along with lumpy rich grade iron ore. The reduction is carried

out in an inclined horizontal rotary kiln, which rotates at a predetermined speed.

A temperature profile ranging from 800-1050 degree centigrade is maintained along the

length of the kiln at different zones and as the material flows down due to gravity the ore is

reduced.

The hot reduced sponge iron along with semi-burnt coal, discharged from kiln is cooled in

water-cooled cylindrical rotary cooler to a temperature of 100200 degree centigrade.

The discharge from cooler consisting of sponge iron, char other contaminations are passed on

through magnetic separators so that sponge iron can be separated from other impurities.

Later the sponge iron is screened into two size fractions i.e. 3 mm & +3 mm. +3 mm

fraction directly goes for usage, -3 mm fraction can be either used directly where ever it is

possible or is to be briquetted by using molasses and hydrated lime as binders.


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The output compositions are as follows:

Composition Percentage %

Total Iron 91 - 93 %

Metallic Iron 80 - 84 %

Metallization 90 - 92 %

Gangue 3 - 4 %

Carbon 0.25 %

Sulphur 0.02 - 0.03 %

Phosphorous 0.035 - 0.05 %

Table 4.4 showing the output composition

Basic Reactions


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QUANTITY USED IN MANUFACTURE FOR THE PERIOD APRIL

2009 TO JULY 2009

Chart 4.1 Quantity used for the period April to July

IRON ORE

COAL

DOLAMITE


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QUANTITY USED IN MANUFACTURING FOR THE PERIOD

AUGUST 2009 TO NOVEMBER 2009

Chart 4.2 Quantity used for the period August to November

IRON ORE

COAL

DOLAMITE


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QUANTITY USED IN MANUFACTURING FOR THE PERIOD

DECEMBER 2009 TO MARCH 2010

Chart 4.3 Quantity used for the period December to March

Chart 4.2 Quantity used for the period December to March

IRON ORE

COAL

DOLAMITE


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RAW MATERIALS DEPARTMENT

As in case of any process, here also quality of raw materials plays a vital role in

obtaining the rated capacity and product quality. The raw material required to produce

Sponge Iron are as follows:

Iron Ore

Coke

Dolamite

The iron ore shall have resistance for physical & thermal decrepitating and good

reducibility and the coal should be of reactive nature along with the characteristics of high

fusion temperature and less amount of ash.


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Sized iron ore, sized coal and sized limestone will be received from the mines/suppliers

directly by road unloaded and stocked in the raw material yard.

The material will be withdrawn by means of pay loader and tippers and unloaded into the

ground hoppers. From the ground hoppers, the materials would be conveyed to respective

vibrating screens by means of belt conveyors and ultimately the sized material would be

stored in the earmarked day bins.

One road weight bridge would be provided for weighing all the incoming materials to the

storage yard and outgoing materials from the storage yard.

As the company imports the raw materials from far places such as South Africa and chinaapart from the neighbouring states, it becomes imperative that there should be a well

designed inventory control system.

The company in order to supply to its customers on the national basis needs a system of

logistics where the consignments are delivered at right time to the customers; it can be either

on road, rail or even sea.


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PURCHASE OF RAW MATERIALS FOR THE MONTHS

APRIL 2009 TO JULY 2009

Graph 4.4 Showing the purchase of raw materials for the months April to July

0

2000

4000

6000

8000

10000

12000

14000

16000

IRON ORE COAL DOLAMITE

IRON ORE

COAL

DOLAMITE


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AUGUST 2009 TO NOVEMBER 2009

Graph 4.5Showing the purchase of raw materials for the months August to November

0

2000

4000

6000

8000

10000

12000

14000

16000

18000


IRON ORE

COAL

DOLAMITE


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DECEMBER2009 TO MARCH 2010

Graph 4.6Showing the purchase of raw materials for the months December to March

0

2000

4000

6000

8000

10000

12000

14000

16000


IRON ORE

COAL

DOLAMITE


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STORES DEPARTMENT

To meet operation requirement of the plant one central store is provided to store various

materials consumables and spares they are as follows:

Equipment

Conveyor belts

Grease

Lubricants and

Refractors

Nearly 70 lakhs of materials are stored. There 3 Shifts manager, data entry operator and 2

helpers. The main functions of this department are as follows:

Inspecting the raw materials

Entering the details in to the system

Arranging the materials in the racks.

QUALITY DEPARTMENT

Sponge iron manufacture is highly sensitive to raw material characteristics. The basic raw

materials for the production of sponge iron are iron ore, non-coking coal and dolomite.

Several tests are conducted in the company laboratory to ascertain their suitability in a rotary

kiln. After conducting tests according to their chemical and physical composition they are

graded.

The company now is in the process of implementing the ISO-9002 standards and is awaiting

the certification from the auditing authorities.


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LABORATORY DEPARTMENT

It is like the heart in a human body for the organization. It is essential to examine the

chemical and physical characteristics of raw materials, both individually and in combination.

The quality of incoming raw material and finished products are tested here. If this department

discharge duties properly the efforts/ operations fails.

Laboratory equipments required are as follows:

Jaw crusher/roll crusher,

Discpulveriser,

Muffle furnace,

Drying cabinet,

Rotary sieve shaker,

C and S apparatus,

Satmagan,

Electronic balance and glassware.


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THE MCKINSYS 7S FRAME WORK

Its all very well devising a strategy, but you have to be able to implement it if its to do any

good. The Seven S Framework first appeared in The Art of Japanese Management by

Richard Pascale and Antony Athos in1981. They had been looking at how Japanese industry

had been so successful, at around the same time that Tom Peters and Robert Waterman were

exploring what made a company excellent. The Seven S model was born at a meeting of the

four authors in 1978. It went on to appear in In Search of Excellence by Peter and

Waterman, and was taken up as a basic tool by the global management consultancy

McKinsey: its sometime known as the McKinsey 7S model.

Managers, they said, need to take account of all seven of the factors to be sure of successful

implementation of a strategylarge or small. Theyre all interdependent, so if you fail to pay

proper attention to one of them, it can bring the others crashing down around you. Like a lot

of these models, theres a good dose of common sense in here, but the 7 S Framework is

useful way of checking that youve covered all the bases.

To better represent the challenges of service marketing McKinsey developed a newframework for analyzing and improving organizational effectiveness, the 7s model:


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SOFTS

The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were

termed Soft Ss by McKinsey:

Skills: The capabilities and competencies that exist within the company. A skill is an

individual ability to translate knowledge into action. The aim of organization is to

provide quality to their customer satisfaction, consistent quality to all.

Shared value: The values and beliefs of the company. Ultimately they guide

employees towards valued behavior.The company produces good quality products

for which it has also received many award.

Staff: The Companys people resources and how they are developed, trained andmotivated. Staffing is the process of acquiring human resource for the organization

and assuring that they potential to contribute to the achievement of the organization

goals. Staffing includes the selection, placement, training and development of

appropriate qualified employees.

Style: The leadership approach of top management and the companys overall

operating approach.

HARDS

The 3S across the top of the model are described as Hard Ss:

Strategy: It refers to the set of decisions and actions at gaining a sustainable

competitive advantage the direction and scope of the company over the long term.

Structure: The basic organization of the company, its departments, reporting lines,

areas of expertise and responsibilities (and how they inter relate).

System: Formal and informal procedures that govern everyday activity, covering

everything from management information systems, through to the system at the point

of contact with the customer (retail systems, call center systems, online system etc)


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Strategy

Skills

Staff

Style

System

Structure

Shared

Value

Description of 7-S Model

STRUCTURE

Definition of Structure:

Structure describes the hierarchy of authority and accountability in an organization these

relationships are frequently diagrammed in organizational charts. Most organizations use

some mix of structures- pyramidal, matrix or structured onesto accomplish their goals.

A structure is the formalizing of relationships, roles and responsibilities in order to recognize

and perform work.

In simple terms, structure is a pattern in which various parts or components are inter-related

and inter-connected. So, organization structure is a pattern of relationships among various

activities and positions. Because various people hold these positions, the structure defines the

relationships among people in the organization


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Organizational structure performs in the following major functions:

The overall responsibility for the safe and efficient operations at the location shall rest

with the location in charge.

However all the officers working at the location shall have the following functions as

entrusted by the location in charge from time to time.

Implement all the statutory requirements related to receipts storage and dispatch of

product. Impart adequate training to all subordinates enabling them to perform their

duties satisfactorily.

Develop and maintain good relationship with all customers and other connected

agency.

It undertakes a wide variety of activities through devices such as departmentalization,

specialization, division of labor of delegation of authority.

The manager of the company is in a position to control the activities of different

department on the organization.

For taking the entire problem he meets the knowledge of about both technical and

managerial knowledge.

The employees of each department is responsible for the activities done in their

respective departments and answerable and reporting to the department manager.

In the organization the department manager comes under the top level management.

Under these position technical officer, sales officer, accounts officer and

administrative officer are present they comes under the middle level management and

other workman, security guards and clerks comes under the lower level management

of the organization.

In RAYEN, each department is interlinked with other departments has to maintain a

good control with other departments


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STRATERGY

It refers to the set of decisions and actions at gaining a sustainable competitive advantage.

OBLIGATIONS

Towards customers and suppliers:

To provide prompt, courteous and efficient service and quality products at fair and

reasonable prices.

Towards suppliers:

To ensure prompt dealings with integrity, impartiality and courtesy and promote

ancillary industries.

Towards employees:

Develop their capability and advancement through appropriate training and career

planning.

Towards community:

To develop techno-economically viable and environment-friendly products for the

benefit of the people.

Encourage progressive indigenous manufacture of products and materials so as to

substitute imports.

To ensure safety in operations and highest standards of environment protection in its

manufacturing plants and townships by taking suitable and effective measures.

Financial objectives:

To ensure adequate return on the capital employed and maintain reasonable annual

dividend on its equity capital.

To ensure maximum economy in expenditure.

To manage and operate the facilities in an efficient manner so as to generate adequate

internal resources to meet revenue cost and requirements for project investment,

without budgetary support.

To develop long-term corporate plans to provide for adequate growth of the activities

of the corporation.

To endeavor to reduce the cost of production of sponge iron by means of systematic

cost control measures.


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SYSTEM

System refers to all the rules, regulation and formal procedure and informal that complement

organizational structure. It includes buying and selling, planning and control system, capital

budgeting system, recruitment, training and development schemes.

In RAYEN there is a separate department to plan and control the buying activities in this

department the organization has to account for how much raw materials the trucks have to

bring. The buying is planned according to demand of the sponge iron in the market.

Recruitment is the process of searching prospective employee and the recruitment of

employees are carried out at the head office, Bellary in the human resources department. In

case of vacancies or in case of appointing from outside, the RAYEN recruit people throughconsultancies, employment exchange and sometimes it will be published in news papers.

They conduct interview. The qualified suitable candidates selected to the right job.

TRAINING AND DEVELOPMENT

RAYEN takes up training and development activities in an integrated way, which includes all

level of employees. Training needs of various levels of employees are assessed on the basis

of manpower planning discussions are also held between manager and employees forassessing training needs.

All the personal selected for operation department shall be thoroughly trained before getting

independent assignments especially for the automated terminals.

The location in charge will ensure that all other personal working. In the working location

receive adequate training in all functions of operation.

They conduct lecture and meetings.

The minimum period of training varies from a week to a month (according to the nature and

complexity of the job).


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STYLE

Style of the organization is the evident through the patterns of actions taken by the member of

the top management team over a period of time. Reporting relationships may also convey the

style of the organization.

Leadership style of managers of RAYEN STEELS PVT LTD

Maintain discipline in the organization.

Gives instructions and orders to the subordinates.

Listened to subordinates and responds to their needs.

Takes important decisions for the group.

Maintain unity in the organization.

Inspires and motivates the various members of his group.

Achieve or formulate objectives for his groups.

Maintain communication in the organization.

The manager plays a vital role (top management). The manager of the department takes all

the plans, policies, procedure, etc.

The department heads like marketing, security, finance, R&D, HR, and buying has the

authority to take decisions regarding their department. It is said, Whenever some

responsibility is given some authority should be given.

Like manager takes decisions regarding sales, dealers of different marketing strategies. Like

this finance manager takes the decisions regarding preparing profit and loss A/C and Annual

Report of the corporation.

It has very good quality circle program through which the employees and workers areallowed to discuss any existing problem or can healthy suggestion regarding any problems to

the department manager. This will build healthy relationship between manager and

subordinates and workers.


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SHARED VALUES

It refers to set of values and aspiration that goes beyond the conventional formal statement of

corporate objectives. The organizational cultures can be viewed as system of shared values.

In Rayen steels every employee has to participate in taking the decision in the organization.

The finance department has to maintain proper accounts. The main aim of employee is to

develop the organization, their activities and their public service with efficiently.


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SWOT ANALYSISSWOT ANALYSIS OF RSPL

SWOT Analysis is an important tool for auditing the overall strategical position of a business

and its environment. A scan of the internal and external environment is an important part of

the strategic planning process. Environmental factors internal to the firm usually classified

into Strengths (S), Weaknesses (W), and those external to the firm are classified as

Opportunities (O), Threats (T). Such an analysis of the strategic environment is referred to as

SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firms resources and

capabilities to the competitive environment in which it operate. As such, is instrumental in

strategy formulation and selection. The following diagram shows how a SWOT analysis fits

in to an environmental scan:

SWOT ANALYSIS FRAMEWORK

ENVIRONMENTAL

SCAN

INTERNAL

ANALYSIS

STRENGTHS WEAKNESSES

EXTERNAL

ANALYSIS

OPPOTUNITIES THREATS


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The Strengths, Weakness, Opportunities and Threats of RSPL are as follows:

Strengths

RAYEN STEELS PVT LTD is a reservoir of skilled and experienced personnel. The Company has got an advantage of its location, as the plant is situated where

resources are easily available.

RAYEN STEELS is located near the major power generating stations both hydra

and thermal like Raichur, Munirabad, Shalvathe and Kalinga all these stations are

connected to the grid at Munirabad about 55kms from Bellary.

Commissioning the sponge iron plant as reduced the dependability on scrap.

Company maintains high quality standards so that profitability is increasingyearly. The company can have the competitive advantage over its competitors. It

will help in influencing and mobilizing market demand for the product.

Good corporate image of RAYEN enhances the level of confidence in manager.

Abundant resources of iron ore which is also closer to the plant, hence reduces

transport cost.

RAYEN has a customer friendly approach and improved customer orientation.

Non-existence of labour unions.

Customer percentage of RAYEN is fair and of reliable supplier.

Market demand for sponge iron is more.


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Weakness

The absence of certain strengths may be viewed as a weakness. In some cases, a weakness

may be the flip side of the strength. The weaknesses of RSPL are as follows:

RAYEN is largely dependent on bank loans rather than other sources.

Concentrated on south India market and neglected other parts.

It has to depend on other sources for the procurement of raw materials.

RAYEN is facing a lot of problems like transportation, diesel& fuel, break downs,

Etc

Lack of implementing the new technologies like computerization in all

departments. The factory machines are old, obsolete and break downs are common and it is

leading to maintenance cost the company has to fallow the preventive

maintenance in the organization.

The nature of the process operating cost very high, so that it requires huge

investment.

Water is very essential for the process of extracting sponge iron which is being

pipelined in about 4Kms through plastic pipes, there are chances for the pipe tobreak and also maintenance is difficult.


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Opportunities

The external environmental analysis may reveal certain new opportunities

Efforts are on for reducing the power cost, which is key element in the processof sponge manufacture.

Since RAYEN has wide network of traders, it can supply its product directly to

customers without any difficulty.

This year RAYEN has given very good performance, so it will imbibe a new

enthusiasm in its employee to do better.

Due to economic improvement in conditions especially infrastructure building

in the country. That can enhances the demand for the iron industry andcompany can utilize consumption from the untapped market.

Company will grow due to its healthy conditions because it has all material

resources near to its location that will lead easy consumption of raw materials

and finally it reduces the cost of production.

It can expand its business to Power Plant as the company has the by product

which can be used for electricity generation. The byproduct can be utilized for

the betterment of the company which will yield competitive advantage to the

organization.

Steel industries such as Jindal, Kalyani and Mukunda have come up in Bellary

region from which demand for sponge is more.


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Threats

In this era of globalization competition has become one of the driving forces in each and

every industry. RSPL has also threats from other industries

Increased competition in the market with other domestic producers.

Obsolescence of existing technology.

High cost of input materials. The cost of raw materials is increasing due to

import from the south Africa which inturn effects the cost of production.

Tight money market situation.

Less accumulation of funds from promoters.

They cannot change the selling price of the product as it is fixed by SpongeIron Association.

The steel pricing policy of the government is also big threat to the company

usually the levy prices fixed by the government are very low and fall below

the cost of production.


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LEARNING EXPERIENCE

The training has created a sense of practical exposure and enlightenment in my mind as to

what actually an organization is and how theoretical concepts are practiced in with only

theatrical knowledge, several management concepts were slightly difficult to analyze.

However, after implant training, I have felt empowered with confidence to understand

different management concepts in a pragmatic manner.

The training helped me a lot in recalling the theoretical concepts, which I learnt in my 1st

year MBA. I also came across real problems faced by organization in technology, human

resources etc and the way in which the management tackled those problems.

During this implant training, I realized that management is a backbone of every organization

and without which every activity of organization will go haywire.

I came to know the importance of Management Information System [MIS] in the

organization and how it assists the management in every aspect of its business and how it

helps the management in the process of decision-making.

I came to know how communication acts as an important tool for the smooth functioning of

the organization and how we should communicate on different channels and with differentgrades of peoples.

As we all know that finance is lifeblood of every organization, I personally had a look at the

finance department, I came to know the importance of finance department, and I came to

know the different tools they use to have a control over the liquidity position of the company.

I came to know the importance of Managerial Knowledge such as planning, organizing,

staffing, directing, controlling, and decision-making. I came to know about the rules,

regulation, policies, and procedures of the company, and to what extent employees are

following the rules and regulation laid down by the management. I came to know about the

punitive actions taken by the management against the individuals who breaks the rules and

regulation of the company.

Apart from these I also came to know about the Leader ship traits such as ability to motivate,

counsel and train sub-ordinate in a humane approach to their problem, develop personnel

support and team spirit.


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In training also helped me in knowing the importance of group effort when compared to

individual effort in organization. In addition, importance of human relations was known,

which helps the management getting the things done through its employees.

Personally, I gained many valuable insights in Rayen Steels (P) Ltd., which help in my

career. It is about the working environment, about dealing with the employees, about the

attitude required to sustain in an organization and so on.

In total, I am very much benefited with this implant training. Once again, I thank the

authority of Rayen Steels (P) Ltd. of giving me this opportunity to carry out the implant

training and expose myself to the corpor ate field and I thank all employers of Rayen Steels

(P) Ltd. and as well as who are helping and for giving me continuous guidance to make this

project work successful.


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FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS

The company does not have the effective control on the contract based employees in

the organization.

The cost of production can be reduced through introducing new technology in the

organization. This will lead to control of the cost of production and it influences the

companys profit by certain extent.

The coordination between the each departments in the organization are committed to

overall growth of the organization and employees are sincere and contributing to the

success of organization.

Infrastructure of the company is congested it act as disturbance on the movement of

materials in the organization.

The RSPL having the good relationship with the customers of the organization it will

lead to attract and effectively mobilizing sales in the long term.

The RSPL having good quality of products in the market and it will helps to stimulate

the customers and improve sales.

Employees in the organization are trained and are always trying to contribute to thedevelopment of the company.

The companys distribution channel is efficient and always meets the demand of the

materials to various departments in time.


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SUGGESTIONS

Improve the technology for the sake of growth in production.

The pooling in of money to the capital investment should be basically done by the

investors rather than depending on banks.

The operating costs can be reduced to certain extent by introducing new methods of

production and upgrading the employee skills in the process of production and

effective control of all valuable assets of the organization.

The machines used in the Rayen Steels Pvt Ltd are became obsolete, hence they have

to be replaced with new machinery for improved production this ultimately bring

value addition to the company.

There is lack of infrastructure limits and material handling facilities, hence expanding

infrastructure could be a viable opinion.

Training program is necessary for all the workers to improve quality of production.

RAYEN should try to enter all the regions of India as its new market place.

They should provide the safety equipments for the workers to ensure better safety.

They have to implement the Management Information System (MIS) for the benefit of

organization. (Such as intranet and website).

Introduce innovative methods for improving production.

Improve product quality than the competitors.


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CONCLUSION

The training is one of the most important programmes of a professional course. The trainee

feels very proud of this opportunity, which was provided to him. This opportunity gives him

the practical knowledge for the application of theory.

The internship project in the RAYEN STEELS gave me an opportunity to experience and

evaluates my learning, which I had learnt in the classroom.

It gave me a chance to know about the different departments within it. It was a wonderful

experience to interact with the people from various departments, which are definitely going to

help me a lot in my upcoming future.


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BIBILIOGRAPHY

A. Booksa. Dr. K. Ashwathappa, Production Operation Management, Himalaya Publishing

House, First Edition: 2008

b. P. Subba Rao, Human Resource Management, Himalaya Publishing House, First

Edition: 2008

B. WEBSITE

www.steelscenario.com

www.spongeironindialtd.com

C. News paper

Business Times, Business World

D. Report

Company Annual Report