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M APTER 1:
1.1) INTRODUMTION
Steel Making:
The well established route of steel making is through blast furnace ± basic oxygen furnace (BF ±
BOF). This route of steel making requires not only huge investment but also implementation
period would be very long. Also it requires a large quantity of cocking coal whose availability is
limited in India. The huge capital cost together with the scarcity of cocking coal has given rise to
the development of secondary steel making i.e., through the furnace and induction furnaces
established to operate on scrap were facing certain problems , which have given raise for finding
an alternative material for scrap. ence, sponge iron has emerged as a substitute for scrap in
secondary steel making.

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1.2) INDUSTRY PROFILE:
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 Moking Moal 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 and financial support. This lead to an immense growth of the sponge iron industry in
India, from a meager 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 Ironá 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.
owever since the last survey, the domestic sponge iron industry has undergone dramatic
changes such as,
‡ India has emerged as the world¶s largest producer of sponge iron.
‡ 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.

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FIGURE 1

FIGURE 2

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a) 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 all mini steel plants,
which also use scrap for melting in electric arc furnaces/induction furnaces for manufacturing
steel.

b) ROLE OF DRI (DIREMT REDUMED IRON) IN INDIAN EMONOMY:

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 an

abundantly reflected by the manner in which the price it commands in the market.

Reducing of iron in to form of round shaped structures called as sponge iron by two 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 the backbone of Indian economy. 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.

c) W AT IS T E FUTURE OUTLOOK OF T E INDUSTRY?

Sponge iron will play a key role in the development of the 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. Scrap availability is getting difficult and the cocking
coal reserves are limited. So steel industry has to depend heavily on sponge iron for the supply of
metallic¶s in future.
We have 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.

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d) W AT IS T E REASON FOR MUS ROOMING OF MINI SPONGE IRON
PLANTS?
A 60,000 tonne a year plant without power generation will cost Rs. 24 to 25 crore and a small
plant of 50 tonne 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 price 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 based, which is a clean fuel but which costs
more and availability is poor. Ninety percent of the world production is gas based. Out of ten
percent coal based plants, India accounts for 78 percent.

e) W O ARE T E 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 cocking coal. This has given a
further boost to the demand of sponge iron.

f) W AT ARE T E MAJOR PROBLEMS MONFRONTING SPONGE IRON

MANUFAMTURERS?
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 last
three years before recession and now again the price is following the same path as before. 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 realistic level. We hope the government will accept the
recommendations of the R.K.Dang committee on iron ore policy.

g) W AT IS T E MURRENT 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 company 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.

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h) GOVT. ASSISTANME TO INDUSTRY:

It can be availed through SIIL (sponge iron India ltd.). The spectrum of SIIL services include:
ac Momprehensive testing of raw materials for the process.
ac Preparation of project report for an investment decision.
ac Basic and detailed engineering of the reduction unit and all the auxiliaries from raw material
preparation to storage and handling of finished products.
ac Preparation and selection of mechanical, electrical and instrumentation equipments including
refractories.
ac Inspection of equipment to ensure compliance of specifications and for meeting the required
standard from operational point of view.
ac Assistance in supervision of erection, start up, and commissioning.
ac Scheduling and monitoring the implementation of project with assistance in trouble shooting
during erection and commissioning.
ac Assistance in commissioning the plant and optimizing the plant operations.
ac Full performance guarantees for achieving rated capacity utilization.

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1.3) PRODUMT PROFILE

a) W AT IS SPONGE IRON?
Sponge iron is a metallic product produced by direct reduction of iron ore or pellets in 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 into the ore. The sponge iron has a highly porous structure when viewed under
the microscope and hence this product is called ³sponge iron´.

b) MOAL BASED AND GAS BASED PROMMESSES FOR MANUFAMTURE

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
( BI). The choice of coal based process depends largely on 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

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based sponge iron plants are less capital intensive and can be smaller in size to suit the
investment requirement.

c) USE OF SPONGE IRON

Sponge iron is a part substitute for 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 all mini steel plants, which also use scrap for melting in electric arc
furnaces/induction furnaces for manufacturing steel.
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
abundantly reflected by the manner in which the price it commands in the market.

d) MOMPARISON BETWEEN SMRAP AND SPONGE IRON

The demand for sponge iron is growing day by day with the benefits gained due to the partial
substitution of scrap with sponge iron. A comparison between the scrap and sponge iron on
specific important issues is given below:
SL. NO ISSUE SMRAP SPONGE IRON
1. QUALITY Fluctuates with the presence of tramp Monsistent, because it
elements and mixture of different grade is made from raw iron
of steels. ore.
2. AIALABILITY uncertain Man be produced as
per the requirements
3. PRIME Fluctuates depending upon the Stable as the prices of
availability and demand. the inputs would be
more or less stable.

TABLE NO. 1

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e) RAW MATERIALS
The principle raw materials required for the plant are:
ac LUMP IRON ORE
ac MOAL
ac LIMESTONE
Requirement of raw materials and their possible source of supply are indicated in the table
below:
SL.NO. RAW MATERIALS SOURMES OF SUPPLY QUANTITY (t/yr)
FOR 100 TPD
1. LUMP IRON ORE SANDUR 51,000
(5MM ± 20MM)
2. MOAL SINGARENI 40,000
MOLLIERIES
3. LIMESTONE DRONAM ALAM 1,500

TABLE NO. 2

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1.4. MOMPANY PROFILE:



 the name 
 is 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 doesn¶t cater to the
international market, definitely the growth of Indian economy led to the development of
infrastructure for which it caters to.

  á , 200 TPD (Tons Per Day) Sponge Iron Plant, as a project was conceived
in the year 2006 May at Bellary, by four persons, with two different business back grounds, later
they are the Board of directors of the company, of them two of the directors

á  

and


á   are into igh Power transmission line constructions from last 18 years in
Karnataka, and rest of the two directors

á  and

á  are into Sales and
Distribution of UB spirits in entire north Karnataka region. Apart from all directors¶ investments,
this project was financially supported by Andhra Bank, at the ratio of 40:60 respectively. From
the bank finance 80% is allocated to project cost and 20% towards working capital.
It took eight months for the completion of the project. The company started its production and
sales by 2006 February, from there on it fared well in every direction from quality finished
product produce to providing employment directly or indirectly for around 350 people including
managers, Office Staff, skilled, semi-skilled labors, and security and also catering to their needs.
The company has invested in state of the art technology in automation and in various segments,
with all these positive approaches the Board of Directors has collectively led to growth of the
Mompany. Now the Mompany is into an expansion drive for installing 5MW Integrated Power
plant where in the input is hot exhaust gases from the production line and an Induction furnace
later for producing finished product as Steel.

a) LOMATION:

Rayen steel plant is located in the state of Karnataka .it is located in araginadoni village and is
16 km from Bellary and 5 km from Kudithini. In general selection of suitable site for the sponge
iron plant is governed by the following factors:

ac Proximity to raw materials

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ac Proximity to consuming centers
ac Availability of infrastructure facilities like land, power, water, communication etc.
An ideal location for establishing a sponge iron plant is when the, proposed site is near to the
iron ore and other raw material sources.
Mainly coal and at the same time relatively close to the market centers i.e., secondary steel
making units.
As one of the two main raw materials ± iron ore is available in abundance in Sandur sector, the
ideal location of the plant is considered to be near Bellary. In so far as coal is concerned, the
nearest coal field is Singreni collieries (SMML), from where acceptable quality of coal can be
obtained.
As the quality of coal is only 40,000 TPS its availability and transportation from SMML by road
is feasible. Apart from this if needed imported coal can also be considered through Mhennai port.

b) PLANT LAYOUT:

The following major units are operational at the sponge iron plant:

ac Raw materials storage and building

ac Day bins
ac Rotary kiln and rotary coolers
ac Project separation
ac Waste gas handling system
ac Water supply system laboratory
ac Maintenance shop
ac Mentral stores
ac Sub station
ac Montrol room and m.c.c
ac Administrative building
The raw material storage is located close to the raw material handling plant and day bins. The
kiln cooler building is also located close to the raw material day bins. A well planned road
network is proposed inside the plant connecting all units of the plant.

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c) STRUMTURE OF T E PLANT:
In this plant section there are five departments, they are:

a)c Processing department

b)c Mechanical department
c)c Electrical department
d)c Stores
e)c Mivil department

a)c Processing department:

ere we can say that processing department is the heart of the industry. In this department the
employees have been working on the processing of the production. In steel industry maintaining
quality is very important. In getting quality output the procedure of processing takes a vital part
like in what proportion the raw materials are to be used; in what time it is to be released etc...
The following diagram shows the entire process:

FIGURE 3

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Production capacity of the plant: 200 tpd (tones per day)

FIGURE 4

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b)c Mechanical department :
This department deals with mechanical function of the plant. Some of their works are erection,
maintenance of the plant etc. their role is considerable in this industry.

c)c Electrical department :

This department deals with the electrical aspects of the company. They have been working on
wiring, lighting, checking the motors which are very important in running the plant, checking the
power fluctuations in the plant etc...

d)c Stores department :

All the required materials or goods by the plant are kept in the stores and whenever there is
demand or necessity they utilize those goods. Inventory comprises of spare motors, lubricants,
tools, bulbs, conveyor belts etc...

e)c Mivil department :

This department is involved in constructive works of the company. They also work on cleaning
the raw materials like coal, iron ore etc.

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M APTER 2:

2.1) ORGANISATION STRUMTURE

º
c c
 


c
 

GENERAL
MANAGER

R AND PRODUMTION,
MARKETING AMMOUNTS MATERIALS PLANNING &
ADMIN
MANAGER MANAGER MANAGER MANAGER PLANT
MAINTENANM
E MANAGER
RAW
 MATERIAL LAB TESTING
AND DEPARTMENT

 cc
 FINIS ED
PRODUMT


 c
cc MOVEMENT
 PROMESSING
MIVIL DEPT
STORES
DEPT.
 c
c
 WASTE MEM ANIMAL
ANDLING DEPT
PURM ASE
DEPT.
OUSE ELEMTRIMAL
KEEPING &
INSTRUMENT
ATION DEPT.
IRON ORE
SORTING ADMINISTRA
TION PLANT
DEPT.
MANTEEN ,
SAFETY &

SEMURITY

VE IMLE
MAINTENANME

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2.2) DEPARTMENTS OF T E MOMPANY:

A)c PRODUMTION DEPARTMENT :

Ëc RAW MATERIAL STORAGE AND ANDLING:
Sized iron ore, sized coal and sized limestone will be received from the mines/suppliers directly
by road unloaded and stacked in the raw material yard. The material will be withdrawn by means
of pay loader and tippers and unloaded in to the ground hoppers. From the ground hoppers, the
material would be conveyed to respective vibrating screens by means of conveyor belts and
ultimately the sized material would be stored in the earmarked day bins. One road weigh bridge
would be provided for weighing all the incoming materials to the storage yard and outgoing
materials from the storage yard.

Ëc STOMK OUSE:
The reduction plant would have a stock house housing the day bins for storing sufficient
requirements of various raw materials. ere, sized iron ore, sized feed coal, and limestone will
be stored in separate RMM bins. Weigh feeders will be provided to the raw material bins for
withdrawing predetermined quantities of iron ore, coal and limestone from the bins which will be
conveyed to the kiln feed building by means of belt conveyor.

Ëc KILN AND MOOLER:

For direct reduction of iron ore, two rotary kilns which is the main/major facility are used. The
kiln feed from the charging end will consist of screened iron ore, feed coal and limestone. A
portion of fine coal will be injected from the discharge end of the kiln. Inside the kiln, the raw
material will be dried and heated to the reduction temperature of approx. 1000 degree centigrade.
The iron oxides of the ore will be reduced to metallic iron by carbon monoxide generated inside
the kiln. The heat required for the process will be supplied by controlled combustion of coal and
volatiles inside the kiln. Thermocouples will be located along the length of the kiln shell for
temperature measurement in various zones. The temperature will be regulated by controlling the
amount of combustion air admitted into the kiln through fans mounted on the kiln shell. A
variable speed main drive has been provided to rotate the kiln at desired speeds. For initial
starting and during emergency operation an auxiliary drive has been provided which will rotate
the kiln at a constant RPM. The inside of the kiln will be lined with special high alumina

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refractory. Light diesel oil or .S.D. oil will be used for initial heating of the kiln during start up
and during disturbed operation of the kiln. No fuel oil will be required during normal operation.
owever, in the event of any thermal imbalance occurring during operation, fuel oil will be
required to be used for correcting the imbalances in the shortest possible time.
The product from the kiln will be cooled in a rotary cooler by means of indirect spray of water
on the surface of the cooler. Arrangement for bypassing the product will be provided at the
discharge end of the cooler for any emergency discharge of materials.
The cooled product will be conveyed to the screening and magnetic separation building by a
system of belt conveyors. The cooling water will be collected in troughs below the cooler and
pumped to the cooling tower for cooling and recycling after the required make up water.

Ëc PRODUMT SEPARATION:
The cooler discharge consisting of sponge iron (lumps and fines) which are magnetic and char
and dolochar which are nonmagnetic will be conveyed to the magnetic separators. Magnetic
fraction of +3mm will be conveyed to the sponge iron storage bin. The non magnetic fraction of
+3mm will be stored in char bin. Similarly -3mm sponge iron fines and char fines (dolochar) are
also separated and stored separately in different bins.

Ëc WASTE GAS ANDLING SYSTEM:

The waste gases from the kiln flowing in counter current to raw materials will pass through a
dust settling chamber where heavier dust particles settle down due to sudden decrease in velocity
of gasses. Thereafter, the flue gases pass through an after burning chamber where any unburnt
carbon monoxide present in the gasses will be completely burnt by blowing excess air. The
completely burnt gases will then pass through a down duct into an evaporation cooler where the
temperature is brought down and then through E.S.P where balance dust particles are separated.
Now the waste gases free from any dust particles and at a temperature of about 140 degree
centigrade is let out into the atmosphere through an RMM stake of 40 meters height.

Ëc STORAGE S ED:
Sponge iron from the product separation unit will be conveyed to sponge iron bin of about 180
tonnes capacity. In the normal course, it is envisaged that customer¶s trucks will be directly

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loaded from the sponge iron bin. owever, in case the bin is full, sponge iron from the bin will
be transported to a covered shed for storage.

Ëc MONTROL ROOM:
A centralized control room is provided with metering and control instruments besides
interlocking and protection schemes. The room will be centrally air conditioned.

Ëc INDUSTRIAL WATER SUPPLY:

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
to the 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.

Ëc MOMPRESSED AIR FAMILITIES:

To meet the demand of compressed air, two water cooled compressor of 400cfm and at a
discharge pressure of 6 kg/cm2 is installed. This compressed air is used for the grease pumps and
the pneumatic seals to kilns and cooler.
For distribution of compressed air to different consuming points, an adequate distribution
network of pipelines has been provided.

Ëc LABORATORY FAMILITIES:
Laboratory equipments required are jaw crusher/roll crusher, disc pulveriser, and muffle furnace,
drying cabinet, rotary sieve shaker, M and S apparatus, satmagan, electronic balance and
glassware.

Ëc MENTRAL STORES:
One central store is provided to store various materials consumables and spares viz, equipment,
conveyor belts, grease, lubricants, and refractors to meet operation requirement of the plant.

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Ëc POWER REQUIREMENTS:
The power requirement of the proposed sponge iron plant is estimated at 1500 KVA on 30
minute maximum demand arises with an annual energy consumption of 5 million KW .
ydrothermal power is made available to the plant site by KEB.
For emergency power supply one set of 500 KVA generators rating at 415V, 50 z is provided
to cater to the emergency power requirements of vital units of the plant requiring uninterrupted
power supply. The DG set will be complete with auxiliaries like AMF panel, daily oil storage
with transfer pumps etc... and necessary instrumentation.

Ëc POLLUTION MONTROL FAMILITIES:

ac AIR POLLUTION MONTROL :
The air over a sponge iron plant area and beyond its boundaries tends to get polluted with gases
and dust particles emanating from the stack, transfer points of conveying and handling
equipment.
The major atmospheric pollutants in a sponge iron plant are waste gases mainly consisting of
carbon dioxide, sulphur dioxide, nitrogen, iron ore dust, coal fines, ash, and limestone fines etc.
Exhaust from both technological and ventilation equipment would be treated and let off to
atmosphere at a height according to air pollution control norms. The stack height will be chosen
as to ensure that ground level concentration of pollutants remains within the permissible limits
ensuring that the chimney height is at least 2m above the top most point of the adjacent tallest
building.
The off gas from the rotary kiln containing combustibles like carbon particles and carbon
monoxide apart from oxides of sulphur and fines of iron ore, coal and limestone are completely
burnt in the afterburning chamber and the waste gas is passed through gas cleaning plant
consisting gas conditioning tower and EP to make free from any hazardous elements before
being let out into the atmosphere through a 40m high stack.

ac WATER POLLUTION MONTROL:

Adequate effluent handling, treatment and disposal measures have been taken to confirm to
prescribed norms. The waste water after treatment would be discharged in to the storm water
drainage system, chemical wastes from the laboratory, will be neutralized before discharging into
the sanitary sewerage treatment system.

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ac NOISE POLLUTION MONTROL:
Due to technological reasons it may not be practicable to entirely eliminate the noise. owever,
noise levels could be brought down to the acceptable levels wherever possible. The major
equipment of high noise production can be identified as ID fan, deducting 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 the equipment,
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)c UMAN RESOURME MANAGEMENT DEPARTMENT

Ëc OBJEMTIVES OF RM
ac SOMIAL OBJEMTIVES:
The social objective of RM is to seek and to ensure that the organization becomes socially
responsible.
ac ORGANISATIONAL OBJEMTIVES:
It makes sure that RM is not a standalone department but rather a means to assist the
organization with its primary objective.

ac FUNMTIONAL OBJEMTIVES:
It reminds the RM that it has only functional value and should not become too expensive.
ac PERSONAL OBJEMTIVES:
It assists employees in achieving their personal goals.

Ëc R POLIMIES
Rayen steels pvt. Ltd. are committed to bind the organization with a common purpose, a
common mission and common values so as to continuously upgrade quality of work life of
employees through:
c Mreation of good working environment and shared accountability for quality, safety and
knowledge.
c Adoption of improved work practices to foster the intellectual capital.
c Develop people with high degree of entrepreneur ability and leadership qualities.
c Develop emotional togetherness for string ownership
c Defining the role and responsibility of employees to generate empowerment and right leadership.
c Encouraging teamwork, participation and involvement to effectively deal with negative residues.
c Development of personnel to create knowledge tank and a learning base to defeat competition.
c Recognize performers through rewards and recognition.
c Employing people only with good knowledge pool and technical viability for fostering the
organizational goal.
c Developing a system of fair and equitable wages and salary administration which is competitive
to all other competing organization.

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Ëc REMRUITMENT PROMESS:
ac In this organization the recruitment process consists of both internal factors and external factors.
ac Whenever there is vacancies and need for employees they go for recruitment process. ere the
job analysis process begins and by analyzing, the management will come to know in what
number and where there is a need for employees.
ac They recruit from reference, employment exchange and consultancies.

Ëc TRAINING AND DEVELOPMENT:

ac After appointing the applicant if he/she is in to functional level, training will be given to them.
But if they are into management level development programme is conducted for them.
ac As we know there are two types of training we have, like on the job training and off the job
training. ere in the organization they have on the job training. ere they have to work in team
and with experienced persons and they have to get the training from them. In such a type of
training the employee will observe each and every activity, process which is going on in the
plant and have practical experience. ere they can clarify their doubts immediately.
ac As per development program is concerned the management will arrange seminars from the
experts in the related field.

Ëc EMPLOYEE WELFARE:
ac WORKING ENVIRONMENT:
c Maintaining safety and cleanliness measures.
c Montrol of effluents
c Monvenience and comfort during work that is operative¶s posture, seating arrangements.
c Workmen safety measures like maintenance of machines and tools, providing guards, helmets,
goggles etc.
c Workshop sanitation and cleanliness, temperature, humidity ventilation, lighting, etc.

ac MONVENIENMES:
c Providing of drinking water
c Manteen services
c Mloak rooms, rest rooms
c Transport Facilities
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ac WORKERS EALT SERVIMES:
c Dispensary
c Mompany doctor
c Ambulance
c Emergency aid
c Medical examination

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M)cFINANME AND AMMOUNTS DEPARTMENT
Finance deals with the various financial activities of the organization. Rayen steels pvt. Ltd.
prepares profit/loss and balance sheet to know the financial position of the firm.

Ëc FUNMTIONS OF T E FINANME DEPARTMENT:

ac Banks provide long term as well as short term funds.
ac Long term funds like debentures, term loans, etc., are used for project financing.
ac Short term funds are taken to meet the working capital requirements.
ac Mommercial bank helps in giving short term funds.
ac Individual banks will not finance the whole requirements but they will share with other banks.

Ëc BOOK KEEPING:
A company should maintain books of accounts. There is a computerized system including the
accounts of purchase, sales, cash/bank, stock, tax, fixed assets, etc.
The department has to disclose the information by closing the books monthly. The books are
disclosing the information to the share holders of the company.

Ëc AUDIT:
There are two kinds of audit:
ac Internal audit: calls some of the outsiders or company. Mapable people handle internal audit and
it is disclosed to the department only.
ac Statutory audit: yearly report is addressed to the shareholders.

Ëc TAXATION:
There are different types of taxes like income tax, sales tax, excise duty etc., the income tax is of
two types ±one on the company and other on the establishment.on the company it is based on
profitability. In the establishment the employees or contractors will be levied tax. The authorities
take the responsibility of paying tax by deducting the amount from their salaries.

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Ëc FINANME POLIMY:
In the direction of achieving the company¶s mission, the finance team endeavors for replication
of values of the company by meeting the requirements of:
a.c Employees.
b.c Government exchanges
c.c Banks and financial institutions.
d.c Mustomers and suppliers
e.c Promoters and share holders

Ëc RESPONSIBILITIES OF FINANME DEPARTMENT:

a.c Monitoring financial performance
b.c Looks in to working requirements like men, material, money etc.
c.c Maintain proper books of accounts
d.c Responsible for auditing

Ëc MAPITAL MOST:
The estimated capital cost of the plant is Rs.14.73 crores (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 on quotations/offers received from
similar plants of our clients.

Ëc MEANS OF FINANMING:
a.c 30% is from share capital (4.42 crores)
b.c 70% is raised in from financial institutions (10.31 crores)

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D)cMARKETING DEPARTMENT

Ëc DEFINITION OF MARKETING:
Marketing is a social process by which individuals and groups obtain what they need and want
through creating, offering and freely exchanging products and services of value with others.

Ëc AIM OF MARKETING:
To know and understand the customer so well that the product and service satisfies him and sells
itself. Ideally marketing should result in customer who is ready to buy. All that should be needed
then in to making the product and service available.

Ëc OBJEMTIVES OF MARKETING:
ac To take care of sales and dispatching them properly.
ac To look after the central excise matters pertaining to the sales of the department.

Ëc POLIMIES:
ac Keep a watch on the market conditions.
ac Branch officials and agents should always be in touch with customer.
ac RAYEN always prefer to have direct contact with the plot owners for timely supply of raw
materials.
ac Orders are always taken on first come first serve basis and credit sales are negotiated only after
knowing buyers credibility and prior approved of management.
ac The transporter approaches marketing section for billing and other various documents required as
per government rules.

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ËcMARKETING MIX OF RAYEN:
1.c PRODUMT:
Product name: sponge iron
Quality: high
Branding: RAYEN STEELS PVT. LTD.
Packing: not required
Molor: ash
After sales service: good

2.c PRIME:
Mash transaction: as price is fixed by the sponge iron association it can¶t be changed. It is useful
to maintain good and healthy relation with competitors.
Mash discount: it is left to the company whether to discount or not if it is paid from cash.
Mredit period: 30 to 45 days.

3.c PROMOTION:
Public relation: good relationship
Advertising and publicity: not needed

4.c PLAME:
Mhannels of distribution: direct selling and commission agents.
Mode of transport: by road only.

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M APTER 3:

3.1) SWOT ANALYSIS

c STRENGT S
ac RAYEN STEELS PVT LTD is a reservoir of skilled and experienced personnel.
ac Rayen steel maintains quality and consistency in their production.
ac Rayen steels is located nearby major power generating stations i.e., both hydro and thermal
situated in Raichur, Munirabad, Shalvathe and Kalinga. All these stations are connected to the
grid at Munirabad about 55kms from Bellary.
ac Mommissioning the sponge iron plant has reduced the dependability on scrap.
ac Morporate image of Rayen enhances the level of confidence in manager.
ac Rayen has a customer friendly approach and improved customer orientation.
ac There are no labour unions in the organization.
ac Mustomer percentage of Rayen is fair and of reliable supplier.
ac Market demand for sponge iron is more.
ac Rayen is comprised of young and enthusiastic managers and staff.

c WEAKNESS
ac Rayen is largely dependent on bank loans rather than other sources.
ac Moncentrated on south Indian market and neglected other parts.
ac It has to depend on other sources for the procurement of raw materials.
ac Rayen is facing a lot of problems like transportation, diesel and fuel, break downs, raw material
availability etc«

c OPPURTUNITIES
ac Efforts are being made to reduce the power cost, which is the key element in processing of
sponge iron manufacturing.
ac Since Rayen has wide network of traders, it can supply its product directly to customers without
any difficulty.

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ac This year Rayen has given very good performance, so it will imbibe a new enthusiasm in its
employees to do better.
ac Steel industries such as Jindal, Kalyani, and Mukunda have come up in Bellary from which
demand for sponge has gone up.

c T REATS
ac Increased competition in the market with other domestic producers.
ac Obsolescence of existing technology.
ac igh cost of input materials.
ac Tight money market situation.
ac Less accumulation of funds from promoters.
ac They cannot change the selling price of the product as it is fixed by sponge iron association.

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3.2) VISION AND MISSION

c VISION
ac After commissioning the sponge iron plant, on which has reduced the dependability on scrap,
Rayen is now concentrating its efforts on reducing the power costs.
ac Installation of pre heated power plant, which helps in reducing the power cost.
ac The company is planning to increase their production presently 200 tones to 300 tons per day in
future.
ac To reduce cost of production.

c MISSION
ac To maximize creation of wealth, value and satisfaction for stakeholders.
ac To provide technology and services through sustained research and development.
ac To foster a culture of participation and innovation for employee growth and contribution.
ac To cultivate high standards of business ethics and total quality management (TQM) for a strong
corporate identity and brand equity.
ac To help enrich the quality of life of the community and preserve ecological balance and heritage
through a strong environment conscience.
ac To develop healthy interpersonal relation and positive and discipline in the organization.
ac Establish long term relationship with customers achieve lower possible energy consumption.

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3.3) GOALS AND OBJEMTIVES

ac To earn a reasonable rate of interest on investment.

ac To maximize utilization of the existing facilities in order to improve efficiency and increase
productivity.
ac To further enhance distribution network for providing assured service to customers throughout
the country through expansion of reseller network as per marketing plan.
ac To supply reliable quality of sponge iron to the customer.

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M APTER 4:

4.1) SUGGESTIONS AND REMOMMENDATIONS

ac Provide good commission to the traders for further increase of sales.

ac Improve the technology for the sake of growth in production.
ac Training program is necessary for all the workers to improve quality of production.
ac Rayen should try to enter all regions of India as its new market place.
ac It should reduce the cost, develop customer sensitiveness and give incentives to workers and
employees.
ac They should provide proper safety measures for the workers.
ac They have to implement the management information system (MIS) for the benefit of the
organization.
ac Improve product quality than the competitors.

4.2) MONMLUSION

The training is one of the most important programmes of a professional course. The trainee feels
very proud of this opportunity, which has been provided to him/her. This opportunity gives him
the practical knowledge for the application of theory.
The internship program in Rayen steels gave me an opportunity to experience and evaluated my
learning, which I had gone through in my classroom.
It gave me a chance to know about the different departments within the organization. It was a
wonderful experience to interact with the people from various departments. And all this is
definitely going to help me a lot in my upcoming future and career.

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BIBLIOGRAP Y:

JOURNALS: Publication of minerals and metals review,

Publication of Indian sponge iron industry by

Joint plant committee.

INTERNET: www.steelscenario.com
www.spongeironindialtd.com
www.rayensteels.com

REFERENME BOOKS: Marketing Management- Philip Kotler

.R.M ± V.S.P Rao

F.M. ± I.M.Pandey
Production Management ± Subba Rao

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