BMM ISPAT LTD, HOSPET
INTRODUCTION
The project work is carried at BHARATH MINES AND MINERALS ISPATindustry .The main theme of the study is to understand and evaluate the market forcesoperating in the mines and minerals industry. The study also furnishes resultspertaining to market potential of mines and minerals mills industry in Bellary andhospet . It’s an instrument which help the unit to understand its strength and weaknessand thus work on it to intensify its position in the market.This organization study was an effort towards understanding the organization, itspolices and structure of Bharath mines and minerals industry. The methodologyadapted for the study was observation and direct interview. Various departments werevisited and data was collected about the structure and functioning of each departmentand the organization.The overall organization structure was studied along with the functioning of variousdepartment such as human resources, administration, sales, marketing, finance andproduction department.Bharath mines and minerals industry has very strong competitions like[OBERAI ENTERPRISES, KOCHIN. ABHISHEK MINERALS, RAIPUR.]
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BMM ISPAT LTD, HOSPET
PART-A1.INDUSTRY PROFILEORIGIN OF INDIAN MINERALS INDUSTRY
The steel industry in the world, which was characterized as a sunset industry twodecades ago, is experiencing a vast change in scenario. The fast developing has far outstripped the world minerals giants. United States, Russia and Japan, which wereleading minerals producers, are no more in a position to claim that position. China, producing less than a million tonnes of minerals prior to revolution in 1949,has now become the largest minerals producer in the world. During 2005 the globalminerals production stood at 1132 million tonnes, showing a rise of 6 per cent over the last year. The countries in South America, CIS (former Soviet Union) Europe andNorth America have actually shown negative growth. The Asian continent for the firsttime produced more crude than the rest of the world combined. Major shift has takenplace because during 2005 with China producing 349 million tonnes of minerals,counting for 32 per cent of the world minerals productionPer capita consumption of minerals in the world was estimated to be 500tonnes during the year 2005. However in India it stood at only 150 kg during the sameyear. Indian steel production was 38 million tonnes, which accounted for only 3.4 per cent of the world minerals output. In view of the fact that Indian population is 16 per cent of the global population, the production of minerals is much lower in India.AlthoughIndia is the second largest populated country in the world, it ranks eighth inminerals production.With stiff competition in the global market, the formation of giant companies toreduce cost and add to profitability has become the regular feature in the industry.Merger and acquisitions have become the order of the day.
WORLD BANK ADVICE
Though India has objective conditions to become one of the major steel producers, inthe world it continues to lag behind. Despite the fact that India has huge reserves of good quality iron ore and sufficient quantity of manganese, dolomite and coal, it is not
Bapuji Academy Of Management and Research, Davanagere
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BMM ISPAT LTD, HOSPETproducing higher quantity of minerals. India produces more than 100 million tons of iron ore, of which only one third is utilized indigenously while two thirds is exportedat a throw away price.In 1980, the World Bank in its report advised the government of India not to go for any Greenfield public sector minerals plant. Inspite of Indira Gandhi laying thefoundation stone for public sector minerals plant at Daitari and Vijayanagar in 1973,the government of India made no investments. On the one hand adequate additionalinvestments were not made by the government in SAIL and on the other hand thegovernment scrapped the industrial policy resolution of 1956 which provideddevelopment of core sector of economy only in public sector. The governmentpermitted private sector irone ore plants. As a result of this decision, Essar, Mittal,Jindals, Tata groups have taken steps to start more iron ore plants in the private sector.Recently, the government of Orissa even went to the extent of allowing South Koreancompany, POSCO, to take control over the iron ore resources of the state and export itfor their requirement to South Korea LOW CONSUMPTION OF MINES AND MINERALS.India has extremely low level of consumption of minerals and the government of India has not made attempts to promote use of more indigenously produced mineralsThe per capita consumption of minerals in rural India . The wrong thrust given onexport of minerals has also resulted in the utter neglect of developing rural market for irone ore.
UNDERMINING OF PUBLIC SECTOR
The government of India, as a policy measure, systematically reduced the role of thepublic sector in steel industry. It forced the management to appoint Mckinsey, aWorld Bank sponsored MNC consultancy firm, to suggest restructuring of theorganization. Mckinsey recommended sale of Alloy Steel and minerals PlantDurgapur, Salem minerals Plant and Visweshwarayya Iron and Steel Co. Ltd. It alsorecommended privatization of IISCO. It further advised to drastically reduce themanpower and increase the workload on the workers.
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