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INTERNAL GUIDE EXTERNAL

GUIDE
PROF D.K.SRIRAM KRISHNA
MURTHY

SURANA COLLEGE
CENTRE FOR POST GRADUATE STUDIES
CA-17 KENGERI SATELLITE TOWN
BANGALORE
INDUSTRY PROFILE
 The commencement of industry & its growth has began
with iron & steel in India in late 50’s & 60’s by setting up
new integrated steel plant at Bhilai, Durgapur, Bakaro.
Which involved high investment &conventional route of
producing iron through blast furnace

A commission has setup for sponge iron producers in


India called SIIL ( sponge iron India ltd ) in the year 1980
COMPANY PROFILE
M/S RAYEN STEELS PVT.LTD has established on 25th feb 2006
& started its commercial production on 20th may 2006
RSPL started with an initial investment of 14 crores
RSPL is located near Haraginadoni village about 16km far
from Bellary & 5km far from Kuduthini
Located at land measuring about 38 acres of land
RSPL involves in producing sponge iron as a raw material for
steel manufacturing industry
The plant was producing 100 TPD (tons per day) of sponge
iron which has been increased to 250 TPD in 2008
Annual turn more than 30 crore
OWNERSHIP PATTERN
Rayen organization setup under private limited co

The firm consist of 4 Board of Directors


1) Mr.Prakash.S
2)Mr.Manohar.A
3)Mr.Ramu.G
4)Mr.Obul reddy

out of the total investment (14.73cr)


30% is from share capital(4.42cr)
70% is raised in from financial institutions(10.31cr)
Vision and Mission statement
VISION
 To set up an integrated steel plant of international

standards & offer best steel to the global market & stand
ahead among the steel manufacturers

MISSION
 To cultivate high standards of Business ethics & Total

Quality Management(TQM) for setting corporate identity


& brand equity
PRODUCT PROFILE
 Sponge iron is a metallic product produced by Direct

Reduction(DR)of iron ore or pellets in the solid state or


coal based or gas based
• The final product after such Direct Reduction contains a
large percentage of metallic iron with level of
metallization up to 90% & the balance being some
amount of reduced iron oxide
• The sponge iron has a highly porous structure when

viewed under Microscope & hence this product is called


sponge iron
RAW MATERIALS
Raw materials
required
1. Lump iron ore
2.Coal
3.Limestone
PRODUCTION PROCESS
 Production process

Kiln main drive Stock house (raw


Feed
materials)
Belt

Cooling
Processes Sponge iron

Product house Lab testing


CD belt
ORGANISATION CHART
FUNCTIONAL DEPARTMENTS

HUMAN RESOURCE DEPARTMENT


FINANCE DEPARTMENT
MARKETING DEPARTMENT
PRODUCTION DEPARTMENT
HUMAN RESOURCE DEPARTMENT
General
Manager

Welfare Administratio Securities Environmen Transpor Legal &


& n t t compensatio
safety n
HR (assistant)

Time
officer
HR POLICIES
 To continuously foster a feeling of community among their work
force
 To work as a collective force towards a goal that benefits everybody

 Apart from on the job training numerous programs on general


management & behavioural topics are conducted each year
FINANCE DEPARTMENT
STRUCTURE OF OBJECTIVES OF FINANCE
FINANCE DEPARTMENT DEPARTMENT
 To ensure adequate return
on capital employed
 To develop long term
corporate plans to provide
adequate growth of the
company
 To reduce the cost of
production of sponge iron
by means of systematic
cost control measures
MARKETING DEPARTMENT
Practices /procedure
Only those employees who know local language are sent to the customer
Marketer makes the customer to know the quality checks done at Rayen
Customers financial strength & weakness & requirements are known to the bra
Officers & agents

MARKETING MIX
 PRODUCT PROMOTION
PRODUCT : sponge iron ADVERTISING &
QUALITY :high PUBLICITY: low profile
BRANDING: Rayen steels PUBLIC RELATION: good
pvt.ltd relationship
PACKING : not required
COLOUR : ash
AFTER SALES
SERVICE:good
PRICE PLACE

 CASH TRANSACTION :
CHANNELS OF
DISTRUBTION: direct
as the price is fixed by SIIL selling & commission
association it cant be agents
changed .it is also useful to MODE OF TRANSPORT :
maintain good & healthy
by truck only
relation with competitors
 CASH DISCOUNT : it is left

to the company weather to


discount or not if it is paid
from cash
 CREDIT PERIOD: 30-45 days
PRODUCTION DEPARTMENT
STRUCTURE OF PRODUCTION DEPARTMENT
ENVIRONMENTAL MEASURES

ESP :ELECTRO STATIC PRISPITATE


ABC: AFTER BURNING CHAMBER
DCC:DUST COLLECTING CHAMBER
SWOT ANALYSIS
STRENGTHS WEAKNESS
 RAYEN STEELS is located near the  RAYEN is largely dependent on bank

major power generating stations loans rather than other sources.

both hydra and thermal like  Concentrated on south India market


and neglected other parts.
Raichur, Munirabad, kuduthini
 It has to depend on other sources for
 Commissioning the sponge iron
the procurement of raw materials.
plant has reduced the
 RAYEN is facing a lot of problems like
dependability on scrap.
transportation, diesel& fuel, break
 Good corporate image of RAYEN downs, Etc ………….
enhances the level of confidence
in workers.
 Market demand for sponge iron is
more.
OPPORTUNITIES THREATS
 Efforts are on for reducing the Increased competition in
power cost, which is key element
in the process of sponge the market with other
manufacture. domestic producers.
 Since RAYEN has wide network of
traders, it can supply its product Obsolescence of existing
directly to customers without any technology.
difficulty.
 This year RAYEN has given very High cost of input
good performance, so it will materials.
imbibe a new enthusiasm in its
employee to do better. Tight money market
 Steel industries such as Jindal,
Kalyani and Mukunda have come
situation.
up in Bellary region from which Inadequate flow of funds.
demand for sponge is more.
They cannot change the
selling price of the
product as it is fixed by
Sponge Iron Association
FINDINGS
Good production facility

Financially sound

Good industrial relationship

Qualified & skilled workers

Companies friendly environment

Brand presence

Good incentive system

Lack of fresh blood


SUGGESTIONS /
RECOMMENDATIONS
Improve the technology for the sake of growth in
production.
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.
It should reduce the costs, develop customer sensitiveness
and give incentives to the workers and employees.
They should provide the safety measures for the workers.
They have to implement the Management Information
System (MIS) for the benefit of organization.
Improve product quality than the competitors.
THANK U