Professional Documents
Culture Documents
1. INDUSTRY PROFILE
India is gifted with large quantity of iron ore with high ferrous content, which is
the crucial raw material for producing the steel. Hence India is one of the largest
producers of steel in the world.
Though India one of the large steel producers, it has low percepts
consumption of steel in comparison with order developing and developed countries.
India is fortunate in having intensive iron ore deposits with reserves estimated
at 10.3 billion, which is more than 1/4th of the world reserves. Further the average
iron ore content of Indian ore is above 60% in India, the iron ore reserves are mainly
found in the states like Orissa, Karnataka, Bihar, M.P, Goa, A.P., Rajasthan and
some parts of Western Maharashtra.
When, we think of the steel Industry, the first thing that comes in to our mind
is pig iron. This is because of its name. When metal from blast furnace is paired in to
Moulds and solidifies it assumes a shape which resembles the back of a pig, hence
called as pig iron.
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GLOBAL SCENARIO OF PIG IRON:
The demand for the international has a sharp rise, the total production of pig
iron. It is estimated at 500MT, in which developed nation accounts for 45% of the
total production seeing the potential demand many mills in USA such as a Nucor,
Norigstar, Steel and Max steel are switching over to pig iron production.
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6,000
5,000
4,000
3,000
Demand
2,000 Availability
1,000
0
1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005-
97 98 99 00 01 02 03 04 05 06
Before liberalization the pig iron industry was monopolized by the integral
steel plants to utilize the liberalization policy initiated by the Government. Decline in
the pig iron production and paved the way of helping the ISP’s be utilize pig iron for
making steel to gain value addition.
The integrated steel plant (ISP) is the major supplier of pig iron. Public sector
contributes up to 90% of the Pig Iron supply. According to the Steel Ministry Report,
demand for pig iron is estimated to increase by 37% over next 8 years.
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Steel – a versatile commodity, most widely used metal in the world, forms a
core constituent of all major economies. . Accordingly, Steel Consumption is a
derivative of the growth pattern of its various end-use sectors viz. manufacturing,
housing, infrastructure, automobile etc. that ultimately steer the country’s economy.
The steel industry is believed to have been operating at around 90 per cent
capacity utilization factor in 2004. As per International Iron and Steel Institute
estimates, global steel demand has increased by around 8.8 per cent. The growth in
demand was an outcome of strong demand from almost all major consuming
centers. The strongest increase in steel consumption was recorded in North America
(+15%) while the rest of the OECD consumption increased by 3.4%, China recorded
close to 11% increase in consumption. The Indian steel industry is almost 100 years
old now. Till 1990, the Indian steel industry operated under a regulated environment
with insulated markets and large-scale capacities reserved for the public sector.
Production and prices were determined and regulated by GOI. The steel
sector was deregulated in 1991-92, when controls on capacity and prices were
abolished along with quantitative trade restrictions. Import tariffs were also brought
down substantially. In 2000-01, the Indian steel industry operated at finished steel
production level of 26.7 million tones with apparent finished steel consumption at
26.9 million tones. . However, with the onset of liberalization, the Indian steel sector
witnessed entry of several domestic private players and large private investments
flowed into the sector to add fresh capacities. In 2004-05, the indigenous production
of steel was38.4 million tones along with apparent finished steel consumption at 33.4
million tones.
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World Steel Industry
Steel, the recycled material is one of the top products in the manufacturing
sector of the world. The Asian countries have their respective dominance in the
production of the steel all over the world. India being one among the fastest growing
economies of the world has been considered as one of the potential global steel hub
internationally. Over the years, particularly after the adoption of the liberalization
policies all over the world, the World steel industry is growing very fast.
The following table gives a clear picture upon the major crude steel producers
in the world as of the year 2005:
5
per cent; on melting scrap from 5 per cent to 'zero' and on ships for breaking from 15
per cent to 5 per cent.
Further, customs duty on several raw materials used by the steel sector like
non-coking coal, met coke and nickel has been reduced to 5 per cent and on coking
coal to 'zero'.
To bring down the prices of steel, the excise duty on steel products was
reduced from 16 per cent to 8 per cent with effect from February 28, 2004 with a
caveat that the duty regime will be reviewed. Budget 2004-05 revised this partially by
increasing the duty from 8 per cent to 12 per cent, as the intended impact of duty cut
on moderating prices was not achieved.
2) Other Producers: This group consists of smaller stand-alone steel plants that
include producers and processors of steel.
6
• Processors/Enrollers: Units producing small quantities of steel (flat/long
products) from materials procured from the market or through their own
backward integration system.
• Stand alone units making pig iron and sponge iron.
• Small producers using scrap-sponge iron-pig iron combination produce steel
ingots (for long products) using Electric Arc Furnace (EAF) or Induction Arc
Furnace (IAF) route.
7
2. COMPANY PROFILE
The industry was born with unique advantage of having behind the immense
accumulated experience of the group in the field of foundry business, at a time when
the de-licensing and liberalization policies of the government were resulting in rapid
growth in automotive and farm mechanization.
8
The plant has two mini blast furnaces of 350MT capacity each, capable of
producing 1,20,000MT/year. This amounts to a total installed capacity of
2,40,000MT/year. The plant manufactures foundry grade pig iron suitable for
automotive casting & other grades such as basic grade & special grade pig iron to
meet the requirement of other steel industries. The plant has a foundry unit, quipped
to produce 30,000 MT/year of Grey Iron casting for a variety of applications such as
cylinder heads & different types of Housings required by automotive sector tractor
division, commercial vehicles & Diesel engine industries.
The company has engaged 873 direct employees & about 800 peoples are
working through contract for effective functioning of the day-to-day activities, with an
annual turnover of Rs.2500 million per annum. The company is committed to
achieve total consumer satisfaction through adoption state-of-the-art manufacturing
technologies & 7 processes with continue improvements. The company is also
committed to improve quality of work life of its employees through improved work
practices. The company is responsible for the coming up of many ancillaries present,
there are around 20 ancillary units spreads over Koppal. The company has provided
direct employment to about 1000 people & indirect employment to about 10,000
people.
Iron ore is brought from the mine owners in the calibrated from Hospet &
Bellary Iron ore belt within the distance of 50 kms. Coke is mostly imported from
China. Other minerals like Limestone, Dolomite, Manganese ore, Quartz etc., are
produced locally.
Almost all foundries and pig iron users in the country are purchaser of pig iron
from the company supplies quality castings to all renowned automobile
manufacturers like Mahindra & Mahindra, Marti Udyog, Escorts, Tafe and Simpson
to name few.
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A. BACKGROUND AND INCEPTION OF THE COMPANY:
History
The vision of Mr. Laxmanrao Kirloskar, which is being respected world wide
for engineering excellence, can be traced to have its beginning of having cast the
casting of a humble plough.
All though the passing years the Kirloskar group has had a long & close
relationship with the foundry business with several group units specializing in the
manufacture of high quality ferrous & non-ferrous casting.
Kirloskar Ferrous Industries Limited was born with the unique advantage of
having been conceived with ideas accumulated through experience & expertise of
the group in the field of foundry business, at a time when the de-licensing and
liberalization policies of the government came forth in the year 1992 resulting in the
rapid growth in automotive and farm mechanization sectors.
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• Kirloskar Brother Limited (KBL)
• Kirloskar Ferrous Industries Limited (KFIL)
• Kirloskar Middle East FZE (KMEF)
• Kirloskar oil Engines Limited (KOEL)
• Kirloskar Pneumatic Limited (KPCL)
• Kirloskar Proprietary Limited (KEPL)
Iron Ore, Limestone, Coke & Dolomite are the raw materials for the
manufacturing Pig Iron.
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C. VISION, MISSION & QUALITY POLICY
Vision:
“To be a world class product leader through the state of art manufacturing
technologies & process”
Values:
To achieve the MISSION & VISION, the company derived following values:
1. Customer Orientation
2. Vendor Development
3. Development of HR
4. Process & product excellence
5. Responsible corporate neighbor
Mission:
“A family committed to Growth & prosperity of the organization through
leadership activities attributes & quality orientation of people & process that
continuously satisfy the customers with their ever changing needs”.
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Quality Policy:
The company is committed to achieve total customer satisfaction through
adoption of state of the art manufacturing technologies and process with continuous
improvements. The company is also committed to improve quality of work life of its
employees through improved work particles.
Quality objectives:
Customer Satisfaction: Maximization of customer satisfaction by consistent
supply of quality casting pig iron.
D. PRODUCT PROFILE:
The following are the three different grades of Pig Iron manufacturing by the
company. They are:
1. Foundry grade Pig Iron
2. S.G. grade
3. Basic grade
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Pig Iron
14
Engines and Compressors
others
The following table represents the basis of products differentiation and the list
of industries where these products are used:
Textiles
Others Textiles
9% Pumps
17% Pumps
Engine & 15% Automoblie
Compressors
11% Pipes & Fittings
Fans
Fans
6% Engine &
Automoblie
Compressors
Pipes & Fittings 26% Others
18%
Chemical composition of the product is the reason for production for different
kinds of products.
“Keeping the wheels of progress turning in every way always that is, how we
operate”.
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Product Mix:
General Engineering,
Foundry Grade Si 2.0- 2.5%
Automobile, Sanitary, Castings
High Manganese
Mn > 0.9 % High Tensile Castings
Grade
High Phosphorous
P : 0.2 – 0.4% Spun Pipes
Grade
Ultra High
P > 0.5% Rodding Room Applications
Phosphorous Grade
High Silicon Grade Si : 2.5 – 3.0% Fan Body
Ultra High Silicon
Si > 3.0% Rodding Room Applications
Grade
Spheroidal Graphite
P<0.08%, S<0.05% Ductile Iron Castings
Grade
Special Spheroidal P < 0.08%, Ductile Iron Pipes, Automobile
Graphite Grade S<0.025% Engine Block
E. AREA OF OPERATION:
The area of operation of the company is global; it has its branches in other
countries also. Namely:
GLOBAL:
Indo-Malaysia Engineering Co., Malaysia
Kirloskar Industries, Philippines
Kirloskar Kenya Ltd., Kenya
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NATIONAL :
The main production unit of the company is situated in Bevenahalli (Koppal District),
which is surrounded by the rich resources, in terms of raw materials, water, human
resources & a transportation facility. The exact address is as follows,
REGIONAL :
KFIL Address:
Village: Bevenahalli
Post : Hitnal (PIN 583234)
Dist : Koppal
State : Karnataka (INDIA)
ZONAL LEVEL :
F. OWNERSHIP PATTERN:
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The Kirloskar Ferrous Industries Ltd. is Public Limited Company. It has
issued shares to the general public. It gives regular dividend to share holders.
% of Share
Category No. of Shares
Holding
G. COMPETATORS INFORMATION:
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As the company has got two kinds of main products the competitors of the
company are broadly divided according to their type of procurement. They are as
follows,
Foundry:
1. Ashok iron works Pvt. Ltd.,
2. DGP foundry
3. Nalcast
Pig Iron:
1. Sesa Goa Industries Ltd., Goa
2. Kudhuremukha Iron Ore Ltd
3. Kalyani steels Ltd
4. USHA Steels Ltd
5. Jindal Vijaynagar Steels Ltd
H. INFRASTRUCTURE FACILITIES:
The following are the infrastructure facilities provided by the company. They
are:
1. Power: KFIL has the following facilities for getting the required amount of
power.
• State electricity boards
• Two steam turbines/ Generators (capacity 3.5 mw each) using blast
furnaces gas as fuel.
• Kirloskar power supply Pvt. Ltd is established adjacent to KFIL and has
the total installed capacity 19.5mw.
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2. Water: Major requirements of water are being pumped from nearly Tungabhadra
reservoir by laying a pipeline for almost 7km.
6. Furniture: In KFIL every department has well equipped furniture and computers.
I. AWARDS:
The following are certificates of awards given to the company. They are as
under:
ISO – 14001 Certificate
TS-16949 Certificate
QS-9000 Certificate
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Entry of inward material
If Weightment required If Weightment not required
STORES
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GLOBAL SCENARIO OF PIG IRON:
The demand for the international has a sharp rise, the total production of pig
iron estimated at 500mt. Developed nation accounts for 45% of the total production
seeing the potential demand many mills in USA such as a Nucor, Norigstar, Steel
and Max steel are switching over to pig iron production.
The integrated steel plant (ISP) is the major supplier of pig iron. Public sector
(ISP) contributes up to 90% of the pig iron supply.
As the demand for the automobile’s are increasing the demand for the
products of the company is also increasing, so the company has got a clear & bright
future.
PART – B
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McKinsey’s 7-S FRAME WORK
INTRODUCTION
Japanese first introduced this model. The 7-S model is better known as
McKinsey’s 7-S. This is because the two persons who developed this model. Tom
peters and Robert Waterman, have been consultants at Mc Kinsey and company at
that time. They published their 7-S model in their article “Structure is not
organization” (1980) and in their books “The art of Japan management” (1981) and
‘in search of excellent (1982)’. The model starts on the precise that an organization
is not first structure, but consists of seven elements:
• Structure
• Skill
• Style
• Strategy
• System
• Staff
• Shared value.
They argued that when things went wrong, these Ss were manipulated to
give a solution. Out of the 7, the three Ss across the top of the model are described
as “Hard Ss” strategy, structure and system. The 4Ss across the bottom of the model
skills, staff, style, shared value are less tangible, more cultural in nature, and were
termed ‘soft Ss’ by McKinsey. These are difficult to describe since capabilities,
values and elements of corporate culture are continuously developing and changing.
They are highly determined by the people at work in organization.
The McKinsey’s 7-S model is widely discussed framework for viewing the
interrelationship of strategy formulation and implementation.
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It helps to focus on manager’s attention on the importance of linking the
chosen strategy to a variety of activities that can affect the implementation of that
strategy.
1. STRUCTURE:
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It is the part for specialization and co-ordination. It comprises of the basis
organization of the company, its departments, reporting lines areas of expertise, and
responsibility (and how they inter-relate), and the way in which the parts of a thing
are arranged or organized.
BOARD OF DIRECTORS
The main theme of the organization structure is comprehend all the possible
dimensions of the organization structure as in developing the ability to focus on
these dimensions which are currently important to the organization’s evaluations -
and to be ready to refocus as a crucial dimensions shift.
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THE ORGANIZATION STRUCTURE OF THE COMPANY AS FOLLOWS:
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HRM & General Administration is everything to do with people recruitment,
induction, training & development, employee discipline & separation. This
department is taking care of employee from his joining to separation. Department
consciously cares for each employee right from induction to his performance
recognition.
HRM and General Administration Department Structure:
Sr.Gen.Manager
HRM and GA
Sr. Security
Officer Officers
Catering
Engineer
Civil
The HRM Department here at the company considers the employees the best
foremost & major resources of the company upliftment of employee’s growth are at
the center of an organization philosophy of growth. This aims at providing a career in
which the individual can make the maximum contribution to the organization and
employee standard of living.
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Company has taken care of employee’s welfare by providing medical facilities
and subsidized canteen facilities to all employees. Free transportation, The KFIL
Club- Where all the employees and their family member’s recreation activities are
carried out oftenly.
The main ingredients, which are prepared by the company, are as follows.
A] Ores: This includes iron and manganese ore, which are brought from the
Hospet and Bellary iron ore belt.
B] Fuels: which includes low ash metallurgical coke as low ash content in
Indian coke there, coke is imported from china and Japan fluxes are purchased from
the Bagalakot and other nearby places they are totally cost about 150 lacks per
month.
C] Others: consumable and spares, diesel furnaces oil etc these are
purchased at required time and they cost about 50 lacks / per month [approximately]
A] Slow moving: This includes the items which are used very slowly or very
rarely as per the requirements these includes such motors, insure spares capital
items.
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B] Non-moving: These items are purchased only at once these items are
fixed up to the liquidation of the company.
C] Fast moving: These items are regularly used and items are must be
stored at regularly used and items are must be stored a regularly intervals of time
these items stored under this category includes raw materials, consumables spares,
production consumable such as landing pipes hock mats, minimize and reordering
quantity, mechanical spares such as oil seals bearing, drill bits etc.,
All the items, which are stored room, are consumed on the basis of FIFO the
items which are stored are utilized first depending on their requirements the items
which are stored in stores are first inspected and after inspection tag is attached to
that item.
The company is among the first in India to adopt this state of the art
technology with computer controls to produce consistent quality of pig iron. The
company also boasts of a record of projects completion of electing the first mini blast
furnace within 18 months and second mini blast furnace within 9 months.
Its has got uniform crystalline pearl tic structure it is slag free and made from
the riches grade of iron ore and imported coke. It is supplied to the company valued
customer of the engineering industry who cater to automotive, tractor, textile, pumps,
and spun pipe segments as well as the steel industry.
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V. QUALITY ASSURANCE DEPARTMENT:
Quality objectives:
The following are the objectives of quality assurance department. They are as
under:
A] Customer Satisfaction: Maximization of customer satisfaction by
consistent supply of quality casting and pig iron.
Quality System:
To provide guidelines to establish, Document & maintain a quality a means to
ensure that product conforms to requirements. To outline structure of documentation
in quality system, Trade line document the quality planning is done to meet the
requirements of product.
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Methods:
D. Work Instruction:
This is third tier document primary to operate with specify work details there
are generally issued by department or sectional heads & when required they are
translated in vernacular language (Kannada)
E. Forms/ Formats:
Standard check seats supporting documents etc., these are primarily
designed by departments taking into consideration.
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VI. SAFETY DEPARTMENT:
Safety department is mainly concerned with the safety of employees and the
surrounding environment.
Safety Function Chart
Managing Director
In accordance with the vision, “To be a world class product leader through a
state of the art manufacturing technologies and process”
Manufacturers of pig iron and gray iron castings are committed to protect and
up grade our environment and safety of human life through.
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Systematic and cost effective methods for waste management are providing
safe and wholesale healthy environment to prevent accidents and occupational
health hazards. Controlling all pollutants and hazards with in prevailing acceptable
limits through best available technology, resources periodic reviews are helps to
enabling continuous improvements. There is optimal utilization and conservation of
resources through effective recycling and practices of reuse of those materials.
Pricing:
The name “Kirloskar” itself is the mark of quality for the customer. The
company has left the opinion of transporting Pig Iron to the Buyers site to the Buyer.
So one can buy the Pig Iron at the Company’s Site or can order.
33
The company has come across different Prices terminologies.
They are:
List Price
Discount
Allowance
Payment Periods
Credit Terms
List price is nothing but the selling price. It is also called as Basic Price.
Basic Price = Production Cost + Profit
Production cost includes both variable cost and fixed cost.
Price of this company pig iron are comparatively more when compound to
competitions, even with this more price also the company has succeeded in
reaching top market share holding position in the Pig Iron market & Foundry. People
prefer this company Pig Iron because the following reasons:
a. High Quality
b. Fixed Chemical Composition
c. Test Certificates are issued with every load
d. Almost 0% impurities & slag mix up
If customer demands for 2.25% silicon, Then the company will supply exactly
with this proportion, where as others supply with range between i.e., 2.25% silicon
etc.
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In this company, Pig Iron is melted once, almost 98-99% pure molten metal is
obtained while as in it is 97% size is almost comfortable for feeding into less opening
firmness. The company brand name helps in attracting customers. From the above
points is clear that the company is not using any mark penetrating pricing strategy to
penetrate the market instead it is using skimming price strategy.
Promotion
The company has appointed number of dealers throughout India for its
marketing purpose. Each dealer will get Rs. 100 PMT, as commission for the pit iron
is sells.
Credit notes are given to these dealers for their commission. Pig iron is also
sold on credit as one of the promotion tools to attract customers. Credit time
depends on areas (less credit period is for North Zone) and order they give.
Distribution:
The company has got distribution network spread allover India in form of
dealership and also through company’s employees, the company has divided its
market into 7 Zones:
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Finance departments will acts as major part of every industry. It is the basic
necessity of every organization and these controls in flows and out flows of funds in
an industry.
The finances department is treated as the one of the most significant
departments. Finances are the basic necessity to run each and every single activity
of organization.
SR. MANAGER
ACCOUNTS OFFICER
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“6 ‘C’ + 5 ‘S’ = Goals”
To achieve the predetermined objectives, the company made an
environmental friendly policy i.e., “6 ‘C’ & 5 ‘S’ model.
6’C’ Models
1. Cost effective waste management
2. Communication to interested parties
3. Control of pollution within prevailing norms
4. Compliance to legal requirements
5. Conservation of resources
6. Conduction training to all employees
5 ‘S’ Models
1. Seiri – sort (separate unwanted and waste)
2. Seiton –store (a place for every thing and everything in its place)
3. Seiso – Clean (to keep things shining)
4. Seiketser – Maintain (orderliness of things)
5. Shitsuke – Statuesque (training and discipline)
2. SKILL :
It consists of the capabilities and competencies that exist within the company.
It is the talent, craft or accomplishment, naturally acquired or developed through
training and abilities appropriate for a specific job. The employees need to have both
specific as well generic skills. Generic skills mean problem solving skills, decision-
making skills, communication etc. Specific skill like time management, shop floor
management, building teams, leadership and motivation, creativity, advances safety
and environment, industrial safety and environment.
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Training:
The company being a young company with the history of 11 years is set to
develop a full-fledged training department. The training to an employee shall be of
three types. They are:
a) On the job training by concerned supervision.
b) Off the job training.
c) For training program most of the engineers, officers are sent to
various institutions where training programs are conducted time to
time as per the
training needs identified by the concerned department head looks after
the training.
3. STYLE:
This includes the Leadership style of top management and the overall
operating style of the organization. Style impacts the norms people follow and how
they work and interact with each other and with customer.
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Strategy refers to the systematic action and allocation of resources to achieve
the companies aim. The integrated vision and direction of the company as well as
the manner, in which it drives, articulate, communicates and implements that vision
and direction. It can also be defined as the choice of direction and action that the
company adopts to achieve its objectives in a competitive situation.
4. SYSTEM:
Systems are formal and informal procedures that govern everyday activity,
covering everything from management information systems, through to the point of
contact with the customer. Finance department is doing enough to properly plan and
control the funds. There is regular program verification.
Training System:
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Various training programs conducted for the supervisors in the company are
as follows:
- Decision making skill
- Managerial skill
- Computer
- Kaizan principals
Various training programs conducted for the operators. They are as follows:
1) Operative Training:
2) Safety, first aid and fire fighting
5. STAFF:
It refers to the people working in an organization. The company’s people
resources and how they are developed, trained and motivated. The process of
staffing includes various processes like recruitment and selection procedures,
training etc. It refers to how the people are developed, trained, socialized, integrated,
motivated and how the employee’s career is shaped in an organization.
Technical Staff:
These are the staffs they are responsible for the work related to technical
aspect. In this company they are appointing well-qualified and experienced persons
as technical staff. So these staff will have good knowledge about the working
environment.
Supervisory Staff:
These are the person who is in charge with supervising the other employees
in the organization. In this company they are employing experienced staff as
supervisor. So they can observe the fellow workers and guide them as per the
companies need. The experienced supervisors are one of the key assets of this
company.
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Clerical Staff:
These assets are responsible for the office work. These people are the
backbone of the company. If they work well, it will be an asset to the company. In this
company they are employed will & qualified employees for office work. These staffs
are working together for achieving companies objectives.
Man Power:
6. STRATEGY:
Strategy refers to the systematic action and allocation of resources to achieve
the companies aim. The integrated vision and direction of the company as well as
the manner, in which it drives, articulate, communicates and implements that vision
and direction. It can also be defined as the choice of direction and action that the
company adopts to achieve its objectives in a competitive situation.
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Waste Control Strategy:
In order to survive in the market company follows waste control strategy.
The company maintains all the materials in a systematic & in a scientific way,
the best example is, company generates electricity by making use of the waste gas
i.e. CO2 produced during the production process.
Pricing Of Kirloskar:
The name “Kirloskar” itself is the mark of quality for the customer. The
company has left the opinion of transporting Pig Iron to the Buyers site to the Buyer.
So, one can buy the Pig opinion of transporting Pig Iron to the Buyers site to the
Buyer. So one can buy the Pig Iron at the company Site or can order.
The company has across different Price terminologies/ Price Strategies. They
are as follows:
1) List Price
2) Discount
3) Payment periods
4) Credit Terms
5) Seasonal Pricing
6) Area wise pricing
7) Pricing on demand
List price is nothing but the selling price. It is also called as Basic Price.
Basic Price = Production + Profit
Production cost includes both variable cost and fixed cost.
If the transport is undertaken by the company then boarded price is calculated
according to sites mentioned in receipt.
Recorded Price = Basic Price + Freight + CED (Central Excise Duty)
A discount of Rs. 100/- PMT is given to the regular and bulk buyers.
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Price of the company’s pig iron has succeeded in reaching top market share
holding position in the Pig Iron market & Foundry. People prefer their company Pig
Iron because of the following reasons:
High Quality
Fixed Chemical Composition
Test Certificates are issued with every load
Almost 0% impurities & slag mix up
If customer demands for 2.25% silicon then the company will supply exactly
with this proportion, where as others supply with range between i.e., 2.225% silicon
etc., Pig Iron is melted once, almost 98-99% pure molten metal is obtained while as
in it is 97% size is almost comfortable for feeding into less opening furnaces. The
company is not using any mark penetrating pricing strategy to penetrate the market
instead it is using skimming price strategy.
7. SHARED VALUES:
It refers to the core or fundamental values that are widely shared in the
organization and serve as guiding principle that are important. These values have
great meaning because they focus attention and provide a broader sense of
purpose.
Values are things that you would strive for even if they were demonstrably not
profitable. Values act as an organization’s conscience, providing guidance in time of
crisis.
The values and beliefs of the company ultimately they guide employees
towards valued behavior. It refers to the simple goal statements in determining
corporate destiny to fit the concept; most people in an organization must share these
values.
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As per the value of the company “Lets make everyone’s life, an enriched one”
the company has implemented many techniques to see that this values are
implemented.
• The company has sponsored many schools and colleges through the trust
started by.
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PART – C
SWOT ANALYSIS
STRENGTHS:
The company has some its own strengths and competencies. They are
as under:
Good brand image in the market
Market leader in quality
Delivery to customer as per schedule
Nearer to iron source
Well trained and flexible manpower
Good dealership network and area officer
Base load with institutional customer
Low power cost in manufacturing
Near to the transportation – railways as well as road transportation
Quality is established presence in all market eastern zones,
reasonable transportation facilities available for all area 25% of
production is tied up with institutional customer.
WEAKNESS:
Every one should have its own weaknesses like this company also has some
weaknesses. They are:
Transportation problem during harvest season
Inconsistency in appearance
Already at peak utilization of current capacity
Weakness core expertise on prevention maintenance
Total dependence on imported Coke
High coke consumption due to higher fines and handing costs due to
multiple handling
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Higher basic coke consumption due tousle of metallic blast preheated in
place of stove.
OPPORTUNITIES:
The company has some opportunities in future for its growth. They are
mentioned as under:
The company has a good share in the market.
The company has opportunities to tie up with customers.
Can capitalize an upswing in market demand because of all India
presence
Possible tie-ups with major foundries in Gujarat market.
As the company good market edge, it can market 20000 per month of
foundry grade pig iron every month.
Can capitalize on up swings in market demand because of all India
presence.
THREATS:
The company has some threats by competitors, market environment and
some legal & political changes. They are mentioned as under:
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PART-D
2,631,353,70 1,407,974,530
0
2. Loan funds:
(a) Secured loans 3 201,083,342 160,233,338
(b) Unsecured loans. 4 --- 163,333,341
201,083,342 323,566,679
3. Deferred tax liability- net. 5 100,909,721 ---
TOTAL 2,933,346,76 1,731,541,209
3
II. APPLICATION OF FUNDS:
• Fixed assets:
(a) Gross block 2,860,861,57 2,400,708,577
(b) Less: dep. 6 1,196,752,707
(c) Net block 1,333,991,10 1,203,955,870
6
(d) Capital work in progress. 4 43,105,892
1,526,870,47
2
198,558,638
1,725,429,110 1,247,061,762
• Investments. 7 100 ---
• Deferred tax assets – net. 5 --- 82,351,690
• Current assets, loans and
advances:
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(a) Inventories 8 527,744,888 430,241,368
(b) Sundry debtors 9 739,999,601 450,794,052
(c) Cash and bank balances
(d) Other current assets. 10 1,105,445,46 83,433,695
(e) Loans and advances 0
11 8,276,716
18,688,202
12 279,849,140
223,113,520
2,668,991,67 1,252,594,971
(a)
1
Less: current liabilities and
provisions
• Liabilities
13
• Provisions 1,444,053,37 962,343,408
6 267,241,261
17,020,742
(b) 1,461,074,118 1,229,584,669
Net current assets 1,207,917,55 23,010,302
(a)-(b)
3
Profit& loss account --- 379,117,455
Total 2,933,346,76 1,731,541,209
3
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Profit and Loss Account for the year ended 31st March 20007
49
Prior period exp./ (income) (net) 4,785,487 37,079
Profit before tax 665,595,413 397,597,651
⇒ The KFIL net sales for the year 2006-07 registered a growth of 8.78 % over its
previous year.
⇒ The other incomes decreased by 18.55% over its previous year.
⇒ The KFIL profit after tax is also increased by 70.47% over its previous year.
⇒ EPS of the company during the year 2007 is increased by 2.36, it was 2.88 in
previous year.
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PART – E
LEARNING EXPERIENCE
During the course of study the application of managerial theories into practice
has been understood. It helped to link the theories, techniques and practices of
management with different activities of the organization. Kirloskar Ferrous Industries
Ltd. Has a wide range of products, this plant is dealing with Manufacturing of Pig
Iron in three different grades namely, Foundry Grade Pig Iron, S.G. Grade and Basic
Grade.
During the period the Production process and the systematic layout of the
machineries was learnt. The plant is systematically designed so that the production
process is carried out without any delay. The various departments like the
production, testing and quality control are systematically arranged. The production
plant is close to the stores so that the materials can be issued and stored in time.
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The organization provides all necessary facilities like water facility, Power, and
provides Safety Tools & Equipments like gloves, Court, Helmet, masks and etc. in
order to safeguard the health of the workers.
Performance Appraisal, Promotion, Incentive System etc. and to develop the overall
performance of the employees. The sales department is concerned with the
dispatching of the products as per the orders received from the customers.
As part of the McKinsey’s 7-S framework the following things have been
studied:
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The authority, responsibility, relationship and information flow etc. prevailing in
the company were studied. How the training techniques like on the job training and
off the training are adopted in the organization was learnt. The organization
undertakes executive development, supervisory development and workmen
development programs.
The strategies such as Waste Control Strategy, Pricing Strategy, etc. were
studied. Kirloskar Ferrous Industries Ltd. is one organization which follows high
values towards its customers and employees. The social responsibility programs
and the corporate governance of the company were studied during the period. The
company maintains good relation with its employees.
During the In-plant training the various theories learned in the classroom were
linked with the practical application of those followed in the organization. It was a
good exposure to know the working of the organization.
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