PARTA 1.

INDUSTRY PROFILE

India is gifted with large quantity of iron ore with high ferrous content, which isthe crucial raw material for producing the steel. Hence India is one of the largestproducers of steel in the world. With the help of liberalization, globalization of economy in the process, thereis a scope for economic development, which means there will be focus oninfrastructure. This will lead to considerable demand for steel. As its mainapplications are in the construction, engineering and automobile sectors, which arethe key elements in building infrastructure, steel is universal intermediate and hasvery strong forward and backward linkages hence steel industry has become one of the core sector of the economy. Though India one of the large steel producers, it has low perceptsconsumption of steel in comparison with order developing and developed countries. India is fortunate in having intensive iron ore deposits with reserves estimatedat 10.3 billion, which is more than th of the world reserves. Further the averageiron ore content of Indian ore is above 60% in India, the iron ore reserves are mainlyfound in the states like Orissa, Karnataka, Bihar, M.P, Goa, A.P., Rajasthan andsome parts of Western Maharashtra. When, we think of the steel Industry, the first thing that comes in to our mindis pig iron. This is because of its name. When metal from blast furnace is paired in toMoulds and solidifies it assumes a shape which resembles the back of a pig, hencecalled as pig iron.

GLOBAL SCENARIO OF PIG IRON: The demand for the international has a sharp rise, the total production of pigiron. It is estimated at 500MT, in which developed nation accounts for 45% of thetotal 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.

GROWTH OF PIG IRON IN INDIA: Before liberalization the pig iron industry was monopolized by the integralsteel plants to utilize the liberalization policy initiated by the Government. Decline inthe pig iron production and paved the way of helping the ISPs 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.

Steel a versatile commodity, most widely used metal in the world, forms acore constituent of all major economies. . Accordingly, Steel Consumption is aderivative of the growth pattern of its various end-use sectors viz. manufacturing,housing, infrastructure, automobile etc. that ultimately steer the countrys economy. The steel industry is believed to have been operating at around 90 per centcapacity utilization factor in 2004. As per International Iron and Steel Instituteestimates, global steel demand has increased by around 8.8 per cent. The growth indemand was an outcome of strong demand from almost all major consumingcenters. The strongest increase in steel consumption was recorded in North America(+15%) while the rest of the OECD consumption increased by 3.4%, China recordedclose to 11% increase in consumption. The Indian steel industry is almost 100 yearsold now. Till 1990, the Indian steel industry operated under a regulated environmentwith insulated markets and large-scale capacities reserved for the public sector. Production and prices were determined and regulated by GOI. The steelsector was deregulated in 1991-92, when controls on capacity and prices wereabolished along with quantitative trade restrictions. Import tariffs were also broughtdown substantially. In 2000-01, the Indian steel industry operated at finished steelproduction level of 26.7 million tones with apparent finished steel consumption at26.9 million tones. . However, with the onset of liberalization, the Indian steel sector witnessed entry of several domestic private players and large private investmentsflowed into the sector to add fresh capacities. In 2004-05, the indigenous productionof steel was38.4 million tones along with apparent finished steel consumption at 33.4million tones. Today, India produces steel of international standards conforming to almost allgrades and varieties and has been a net exporter for the past few years, whichshows the growing acceptability of its products in the global market, and mostimportantly its increasing global competitiveness.

World Steel Industry

Steel, the recycled material is one of the top products in the manufacturingsector of the world. The Asian countries have their respective dominance in theproduction of the steel all over the world. India being one among the fastest growingeconomies of the world has been considered as one of the potential global steel hubinternationally. Over the years, particularly after the adoption of the liberalizationpolicies all over the world, the World steel industry is growing very fast. The following table gives a clear picture upon the major crude steel producersin the world as of the year 2005:

STEPS TAKEN TO BOOST STEEL INDUSTRY IN INDIA: In budget 2004-05, the customs duty on non alloy steel was reduced from15 % to 10 per cent and on alloy steel from 20 per cent to 15 per cent. In August2004, the customs duty on non-alloy steel was further reduced from 10 per cent to 5 per cent; on melting scrap from 5 per cent to 'zero' and on ships for breaking from 15per cent to 5 per cent. Further, customs duty on several raw materials used by the steel sector likenon-coking coal, met coke and nickel has been reduced to 5 per cent and on cokingcoal to 'zero'. To bring down the prices of steel, the excise duty on steel products wasreduced from 16 per cent to 8 per cent with effect from February 28, 2004 with acaveat that the duty regime will be reviewed. Budget 2004-05 revised this partially byincreasing the duty from 8 per cent to 12 per cent, as the intended impact of duty cuton moderating prices was not achieved. STRUCTURE OF INDIAN STEEL INDUSTRY: The Indian steel industry can be divided into two distinct producer groups: 1) Major Producers: Integrated Steel Produrs (ISPs) includes large steelproducers with high levels of backward integration and capacities of over 1 MT. SteelAuthority of India Limited (SAIL), Tata Steel, Rashtriya Ispat Nigam Limited (RINL),JSW Steel Limited (JSWSL), Essar Steel Limited (Essar) and Ispat IndustriesLimited (Ispat) form this group. SAIL, TISCO and RINL produce steel using the

blastfurnace/basic oxygen furnace (BF/BOF) route that uses iron ore, coal/coke as thebasic input mix for producing finished steel, Essar and Ispat employ Electric ArcFurnace (EAF) route that uses sponge iron, melting scrap or a mix of both as inputand JSWSL uses COREX, a revolutionary technology for making steel usingbasically iron-ore and coal.2) 2) Other Producers: This group consists of smaller stand-alone steel plants thatinclude producers and processors of steel. Processors/Enrollers: Units producing small quantities of steel (flat/longproducts) from materials procured from the market or through their ownbackward integration system. Stand alone units making pig iron and sponge iron. Small producers using scrap-sponge iron-pig iron combination produce steelingots (for long products) using Electric Arc Furnace (EAF) or Induction ArcFurnace (IAF) route.

The steel industry , in general, is on the upswing, due to strong growth indemand propelled particularly by the demand for steel in China. The world scenariocoupled with strong domestic demand has benefited the Indian steel Industry.

2. COMPANY PROFILE Kirloskar Ferrous Industries (KFIL) is the youngest company in the Kirloskar group. The company is the large-scale industry to begin operations in the rural &industrially backward district of Koppal. It began manufacturing Foundry Grad PigIron in April 1994 and Automotive Castings in April 1995.The companys Pig Iron &Casting are well known for their quality throughout the country. The company wasawarded ISO 9002 Quality Certificate in January 1996 & was awarded QS-9000 inDecember 2001 the first QS-9000 certified company for manufacture & selling of pigiron in India. The manufacturing facilities at the company are of world standard & themarket for its automotive castings is growing steadily. All required environmental control equipments were planned at the planningstage itself & are in operation now. This very well within the limits prescribes Govt.,authorities the pollutions. The success of this company is that industrially backwardrural area has led to high-level industrial activity & it is not surprising that the newKoppal District has found its due place in the industrial map of Karnataka. The company is located on the banks of Tungabhadra reservoir, near to therich iron belt of the Hospet Bellary range, adjacent to NH 63 connecting Hospet-Hubli passing through Koppal & Gadag. The plant is 16k.m. from Hospet & Koppal.NH-13 is connecting Chitradurga & Solhapur passes by the side of the plant(approx., 1.0k.m.) the nearest railway station is Ginigera, which is 5.0 Km away fromthe plant. The industry was born with unique advantage of having behind the immenseaccumulated experience of the group in the field of foundry business, at a time whenthe de-licensing and liberalization policies of the government were resulting in rapidgrowth in automotive and farm mechanization. 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 tomeet the requirement of other steel industries. The plant has a foundry unit, quippedto produce 30,000 MT/year of Grey Iron casting for a variety of applications such ascylinder 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 areworking through contract for effective functioning of the day-to-day activities, with anannual turnover of Rs.2500 million per annum. The company is committed toachieve total consumer satisfaction through adoption state-ofthe-art manufacturingtechnologies & 7 processes with continue improvements. The company is alsocommitted to improve quality of work life of its employees through improved workpractices. The company is responsible for the coming up of many ancillaries present,there are around 20 ancillary units spreads over Koppal. The company has provideddirect employment to about 1000 people & indirect employment to about 10,000people. 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 fromChina. Other minerals like Limestone, Dolomite, Manganese ore, Quartz etc., areproduced locally.Almost all foundries and pig iron users in the country are purchaser of pig ironfrom the company supplies quality castings to all renowned automobilemanufacturers like Mahindra & Mahindra, Marti Udyog, Escorts, Tafe and Simpsonto name few.

A. BACKGROUND AND INCEPTION OF THE COMPANY: History The vision of Mr. Laxmanrao Kirloskar, which is being respected world widefor engineering excellence, can be traced to have its beginning of having cast thecasting of a humble plough. All though the passing years the Kirloskar group has had a long & closerelationship with the foundry business with several group units specializing in themanufacture of high quality ferrous & nonferrous 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 andliberalization policies of the government came forth in the year 1992 resulting in therapid growth in automotive and farm mechanization sectors. The Kirloskar Group of Companies : Kirloskar in made up of 8 major group companies, who players in major sectors like manufacturing, oil and gas, power, construction and mining, agriculture,industry and transport each led by the engineering and managerial talent in India. Inaddition to engineering, Kirloskar also have interests in civil utility systems and inInformation Technology and communication. These 8 companies are from the coreof Kirloskar group. Each company is a renowned name in its own area of operationand is respected world wide for its services and products.

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)

Kirloskar is also partner in joint venture with companies as Copeland Limited.This is a joint venture between Kirloskar Brother Limited, Indias leading engineeringcompany and Copeland Corporation of the USA, the world leader in air- conditioningand refrigeration compressors. Also Kirloskar Ebara and Toyota Kirloskar Motors her prestigious joint ventures. Kirloskar Copeland Limited (KCL) Kirloskar Ebara Pumps Limited (KEPL)

Kirloskar has shaping capable managers and dedicated human beings atKirloskar Institute of Advanced Management Studies. It is Kirloskar education center for imparting knowledge to the managers of tomorrow. Kirloskar Institute of Advanced Management Studies (KIAMS)

B. NATURE OF BUSINESS CARRED: The company manufactures the Pig Iron in three different grades, byCalibrated Iron-ore brought from mine owners in the Hospet & Bellary Iron-ore beltwithin the distance of 50 kms. Coke is imported from China. Iron Ore, Limestone, Coke & Dolomite are the raw materials for themanufacturing Pig Iron.

C. VISION, MISSION & QUALITY POLICY Vision: To be a world class product leader through the state of art manufacturingtechnologies & 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 throughleadership activities attributes & quality orientation of people & process thatcontinuously satisfy the customers with their ever changing needs. 1.The company is a family to growth & prosperity of the organization throughteam work. 2.Family that is committed to growth & prosperity leadership is promoting tool. 3.People & processes in place to satisfy customers & shareholders throughcontinuous improvements. 4.Committed to total quality through systems & institutionalization. 5.Integration of people and processes to bring about the rate of internalchanges faster than that of external change.

Quality Policy: The company is committed to achieve total customer satisfaction throughadoption of state of the art manufacturing technologies and process with continuousimprovements. The company is also committed to improve quality of work life of itsemployees through improved work particles. Quality objectives: Customer Satisfaction: Maximization of customer satisfaction by consistentsupply of quality casting pig iron. Supplies Quality Assurance: provide technical support and guidance to their suppliers through quality assurance programmers to ensure highest quality of purchased materials suppliers it is a critical link in company quality system. Employee Development: development and motivation of all employees byproviding necessary training and support to bring out their full potential. Product Excellence: continuously technical and managerial innovation andcontinuous improvement our endeavor is to push themselves till our companyprocess and products are finest in the country and compare with the best in theworld. D. PRODUCT PROFILE: The following are the three different grades of Pig Iron manufacturing by thecompany. They are: 1.Foundry grade Pig Iron 2.S.G. grade 3.Basic grade

The companys products are used in the following industries.They are: Textiles Pumps Automobiles Pipes & Fittings Fans Engines and Compressors Others The following table represents the basis of products differentiation and the listof industries where these products are used:

Chemical composition of the product is the reason for production for differentkinds of products. Mainly products are differentiated on the basis of silicon compensation.Company has got different kinds of customers varying between with high or lowrange of silicon contents. Keeping the wheels of progress turning in every way always that is, how weoperate.

Product Mix:

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 The Main & Subsidiary branch of the company is as under,

E.

NATIONAL : KFIL Main Office address: REGISTERED OFFICE Laxman Rao Kirloskar Road Khadki Pune 411003 (INDIA)

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, humanresources & 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 :

The Kirloskar Ferrous Industries Ltd. is Public Limited Company. It hasissued shares to the general public. It gives regular dividend to share holders. Shareholding Pattern as on 31st March, 2007

G. COMPETATORS INFORMATION: As the company has got two kinds of main products the competitors of thecompany are broadly divided according to their type of procurement. They are asfollows, 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 blastfurnaces gas as fuel. Kirloskar power supply Pvt. Ltd is established adjacent to KFIL and hasthe total installed capacity 19.5mw.

2. Water: Major requirements of water are being pumped from nearly Tungabhadrareservoir by laying a pipeline for almost 7km. 3. Transportation: It have a wide transportation facility, it has linkage with NH-63. 4. Hospital: A hospital is build to cater the medical needs of employees. 5. Canteen: The KFIL has a good canteen facility. 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 asunder: ISO 14001 Certificate TS-16949 Certificate QS-9000 Certificate J. WORK FLOW MODEL

K. FUTURE GROWTH AND PROSPECTUS:

GLOBAL SCENARIO OF PIG IRON: The demand for the international has a sharp rise, the total production of pigiron estimated at 500mt. Developed nation accounts for 45% of the total productionseeing the potential demand many mills in USA such as a Nucor, Norigstar, Steeland Max steel are switching over to pig iron production. GROWTH TREND OF PIG IRON SECTOR IN INDIA:

Before liberalization the pig iron industry was monopolized by the integralsteel plants to utilize the liberalization policy initiated by the government. Decline thepig iron production and paved the way of helping the ISPs 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 (ISP) contributes up to 90% of the pig iron supply. GROWTH TREND OF THE COMPANY: As the company is committed to produce quality products, it results inattracting more number of customers & to beat the competition. As per the infrastructure is concerned, the company has a well equipped &sophisticated infrastructure which helps the company to meet the customersdemand in time. By looking at the present infrastructure, skilled workforce, technology &emerging demand condition, company is planning to put one step ahead i.e. bydiversifying to steel manufacturing industry. As the demand for the automobiles are increasing the demand for theproducts of the company is also increasing, so the company has got a clear & brightfuture.

PART B

McKinseys 7-S FRAME WORK

INTRODUCTION Japanese first introduced this model. The 7-S model is better known asMcKinseys 7-S. This is because the two persons who developed this model. Tompeters and Robert Waterman, have been consultants at Mc Kinsey and company atthat time. They published their 7-S model in their article Structure is notorganization (1980) and in their books The art of Japan management (1981) andin search of excellent (1982). The model starts on the precise that an organizationis 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 togive a solution. Out of the 7, the three Ss across the top of the model are describedas Hard Ss strategy, structure and system. The 4Ss across the bottom of the modelskills, staff, style, shared value are less tangible, more cultural in nature, and weretermed 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 McKinseys 7-S model is widely discussed framework for viewing theinterrelationship of strategy formulation and implementation. It helps to focus on managers attention on the importance of linking thechosen strategy to a variety of activities that can affect the implementation of thatstrategy. Originally developed as a way of thinking more broadly about theproblems of organizing effectively, the 7-S framework provides a tool for judging thestrategies.It is much more difficult to plan or to influence the characteristics of thesoft elements. Although the soft factors are below the surface, they can have a greatimpact of the hard structures, strategies and systems of the organization.

1. STRUCTURE:

It is the part for specialization and co-ordination. It comprises of the basisorganization of the company, its departments, reporting lines areas of expertise, andresponsibility (and how they inter-relate), and the way in which the parts of a thingare arranged or organized .a)Overall organizational structural details Board of Directors/Functional headsetc. b)Sub structure detailing with each functional discipline. Detailed study of various departments& their functions. BOARD OF DIRECTORS Mr. Atoll C. Kirloskar Mr. R.V. Gumaste Mr. Sanjay C. Kirloskar Mr. A.R. Jimenez Mr. C.V. Ticker Chairman Managing Director Directors Directors Directors

Mr. S.N. Inamdar Mr. S.G. Chitnis Mr. A.N. Alawani

Directors Directors Directors

The main theme of the organization structure is comprehend all the possibledimensions of the organization structure as in developing the ability to focus onthese dimensions which are currently important to the organizations evaluations -and to be ready to refocus as a crucial dimensions shift.

THE ORGANIZATION STRUCTURE OF THE COMPANY AS FOLLOWS:

I. HRM & General Administration Department:

HRM & General Administration is everything to do with people recruitment,induction, training & development, employee discipline & separation. Thisdepartment is taking care of employee from his joining to separation. Departmentconsciously cares for each employee right from induction to his performancerecognition.

HRM and General Administration Department Structure:

The HRM Department here at the company considers the employees the bestforemost & major resources of the company upliftment of employees growth are atthe center of an organization philosophy of growth. This aims at providing a career inwhich the individual can make the maximum contribution to the organization andemployee standard of living.

Company has taken care of employees welfare by providing medical facilitiesand subsidized canteen facilities to all employees. Free transportation, The KFILClub- Where all the employees and their family members recreation activities arecarried out oftenly. II. PURCHASE DEPARTMENT: The main function of purchase department is to purchase raw material after concerning with the production dept and storage dept of raw materials is madedepending on the demand of the pig iron in the market and orders from the buyers.The main ingredients, which are prepared by the company, are as follows. A] Ores : This includes iron and manganese ore, which are brought from theHospet and Bellary iron ore belt. B] Fuels: which includes low ash metallurgical coke as low ash content inIndian coke there, coke is imported from china and Japan fluxes are purchased fromthe Bagalakot and other nearby places they are totally cost about 150 lacks per month.C]

C] Others: consumable and spares, diesel furnaces oil etc these arepurchased at required time and they cost about 50 lacks / per month [approximately] III. STORES DEPARTMENT: In the stores department the items are stored depending upon their time of utilization.A] A] Slow moving : This includes the items which are used very slowly or veryrarely as per the requirements these includes such motors, insure spares capitalitems. B] Non-moving : These items are purchased only at once these items arefixed up to the liquidation of the company. C] Fast moving : These items are regularly used and items are must bestored at regularly used and items are must be stored a regularly intervals of timethese items stored under this category includes raw materials, consumables spares,production consumable such as landing pipes hock mats, minimize and reorderingquantity, mechanical spares such as oil seals bearing, drill bits etc., All the items, which are stored room, are consumed on the basis of FIFO theitems which are stored are utilized first depending on their requirements the itemswhich are stored in stores are first inspected and after inspection tag is attached tothat item.

IV. PRODUCTION DEPARTMENT: An innovative technology from KTS [KORF TECHNOLOGIA SIDERVRGICALTD] Brazil has helped the company to design and develop a mini blast furnace toenable medium size entrepreneurs to manufacture pig iron. Mini blast furnace hascome a long way and has enabled many entrepreneurs to produce more than 500million tones of pig iron world over. The company is among the first in India to adopt this state of the arttechnology with computer controls to produce consistent quality of pig iron. Thecompany also boasts of a record of projects completion of electing the first mini blastfurnace 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 fromthe riches grade of iron ore and imported coke. It is supplied to the company valuedcustomer of the engineering industry who cater to automotive, tractor, textile, pumps,and spun pipe segments as well as the steel industry.

V. QUALITY ASSURANCE DEPARTMENT: The company is committed to achieve total customer satisfaction throughadoption of state of the art manufacturing technologies and process with continuousimprovements. The company is also committed to improve quality of work life of itsemployees through improved work practices. Quality objectives: The following are the objectives of quality assurance department. They are asunder: A] Customer Satisfaction: Maximization of customer satisfaction byconsistent supply of quality casting and pig iron. B] Supplies Quality Assurance: provide technical support and guidance toour suppliers through quality assurance programmers to ensure highest quality of purchased materials suppliers it is a critical link in company quality system. Quality System: To provide guidelines to establish, Document & maintain a quality a means toensure that product conforms to requirements. To outline structure of documentationin quality system, Trade line document the quality planning is done to meet therequirements of product.

Methods: A. Quality Assurance Manual (QAM): There is Top Ties document primarily conveying the Organizationscommitment to quality & maximizing customer Satisfaction. This is maintainedcustomer satisfaction. MR.) maintains this as a reference document during.Divisional produce & report procedure (HRM is Training) for reference. B. Common Procedure (CPM) Manual: This is second tier document prepared by MR. Issues these to all dept. headsfor common procedure. C. Departmental Procedure (DPM) Manual: This is also second tier document prepared by divisional Heads dealing how aJob is done with responsibility Specified Department procedures of HRM & TRG areprepared by respective department heads. D. Work Instruction: This is third tier document primary to operate with specify work details thereare generally issued by department or sectional heads & when required they aretranslated in vernacular language (Kannada) E. Forms/ Formats: Standard check seats supporting documents etc., these are primarilydesigned by departments taking into consideration.Production control requirements and issued to users who would be recordingthe status as a Monitoring sequence & this is used for verification & process /product quality.

VI. SAFETY DEPARTMENT: Safety department is mainly concerned with the safety of employees and thesurrounding environment. Safety Function Chart

Environmental: Occupational Health and Safety Policy: In accordance with the vision, To be a world class product leader through astate of the art manufacturing technologies and process Manufacturers of pig iron and gray iron castings are committed to protect andup grade our environment and safety of human life through.

Systematic and cost effective methods for waste management are providingsafe and wholesale healthy environment to prevent accidents and occupationalhealth hazards. Controlling all pollutants and hazards with in prevailing acceptablelimits through best available technology, resources periodic reviews are helps toenabling continuous improvements. There is optimal utilization and conservation of resources through effective recycling and practices of reuse of those materials. Complying with all applicable legal and other requirements of environments,occupational health and safety concerns. Improving environmental, occupationalhealth and safety awareness to all employees through training. Communication of this policy to interested parties for their participation and involvement to maintain theenvironmental, occupational health and safety norms. VII. MARKETING DEPARTMENT: The marketing department is mainly focus on the activities of Marketingproducts, Pricing, Promotion and Distribution of products. These activitiescollectively called as 4 Ps in Marketing. Products: The Company has following products in its Product Line.They are: 1.Basic Grade Pig Iron. 2.Foundry Grade Pig Iron.

3.Spheroidal Grade Pig Iron. Pricing: The name Kirloskar itself is the mark of quality for the customer. Thecompany has left the opinion of transporting Pig Iron to the Buyers site to the Buyer.So one can buy the Pig Iron at the Companys Site or can order.

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. If the transport is undertaken by the company then boarded price is calculatedaccording to sites mentioned in receipt. Recorded Price = Basic + Freight + CED (Central Excise Duty) A discount of Rs. 100/- PMT is given to the regular and bulk buyers. Price of this company pig iron are comparatively more when compound tocompetitions, even with this more price also the company has succeeded inreaching top market share holding position in the Pig Iron market & Foundry. Peopleprefer this company Pig Iron because the following reasons: a.High Quality b.Fixed Chemical Composition cTest 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 exactlywith this proportion, where as others supply with range between i.e., 2.25% siliconetc.

In this company, Pig Iron is melted once, almost 98-99% pure molten metal isobtained while as in it is 97% size is almost comfortable for feeding into less openingfirmness. The company brand name helps in attracting customers. From the abovepoints is clear that the company is not using any mark penetrating pricing strategy topenetrate the market instead it is using skimming price strategy.

Promotion The company has appointed number of dealers throughout India for itsmarketing purpose. Each dealer will get Rs. 100 PMT, as commission for the pit ironis sells.Credit notes are given to these dealers for their commission. Pig iron is alsosold on credit as one of the promotion tools to attract customers. Credit timedepends 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 companys employees, the company has divided itsmarket into 7 Zones:

VIII. FINANCE DEPARTMENT : Finance departments will acts as major part of every industry. It is the basicnecessity of every organization and these controls in flows and out flows of funds inan industry. The finances department is treated as the one of the most significantdepartments. Finances are the basic necessity to run each and every single activityof organization.

Finance Department Chart:

IX. ENVIRONMENT CONTROL DEPARTMENT : 6 C + 5 S = Goals To achieve the predetermined objectives, the company made anenvironmental friendly policy i.e., 6 C & 5 S model. 6C 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 throughtraining and abilities appropriate for a specific job. The employees need to have bothspecific 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 safetyand environment, industrial safety and environment. Training: The company being a young company with the history of 11 years is set todevelop a fullfledged 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 tovarious institutions where training programs are conducted time totime as per thetraining needs identified by the concerned department head looks after the training. Training process of the company: 1. Identification of training needs 2. Selection of trainees 3. Training Budget 4. Selection of trainers 5. Training Calendar 6. Conducting the training program 7. Feedback from participants 3. STYLE: This includes the Leadership style of top management and the overalloperating style of the organization. Style impacts the norms people follow and howthey work and interact with each other and with customer. The management training is totally democratic there are no restrictions to anyemployee to express his opinion. The company has got open door policy i.e. anylevel of employee can meet directly to his superior or managing director with out anyhesitation Strategy refers to the systematic action and allocation of resources to achievethe companies aim. The integrated vision and direction of the company as well asthe manner, in which it drives, articulate, communicates and implements that visionand direction. It can also be defined as the choice of direction and action that thecompany 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 andcontrol the funds. There is regular program verification. In the company is followed purely on basis of merit basis. Promotion will begiven on the basis of pure merit system. The company follows inventory control system, Raw materials will be held in the stores for 15 days only.

Finished goods will be held in the stores for 2 days.

Training System: The following factors are considered for training: 1)Strategic plans of the organization and meet operational areas asestimated by the top management. 2)Training requirements as projected by the departmental heads andindividual employees. 3)Reporting officer remarks in performance appraisal reports. 4)Refresher training requirements in critical area. 5)Career planning and succession planning inputs. 6)Inputs required by new entrants. 7)Training arising out of promotions and transfer Various training programs conducted for the supervisors in the company areas 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 companys peopleresources 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 employees career is shaped in an organization. Technical Staff: These are the staffs they are responsible for the work related to technicalaspect. In this company they are appointing well-qualified and experienced personsas technical staff. So these staff will have good knowledge about the workingenvironment. Supervisory Staff: These are the person who is in charge with supervising the other employeesin the organization. In this company they are employing experienced staff assupervisor. So they can observe the fellow workers and guide them as per thecompanies need. The experienced supervisors are one of the key assets of thiscompany. Clerical Staff: These assets are responsible for the office work. These people are thebackbone of the company. If they work well, it will be an asset to the company. In thiscompany they are employed will & qualified employees for office work. These staffsare working together for achieving companies objectives.

Man Power:

6.. STRATEGY: Strategy refers to the systematic action and allocation of resources to achievethe companies aim. The integrated vision and direction of the company as well asthe manner, in which it drives, articulate, communicates and implements that visionand direction. It can also be defined as the choice of direction and action that thecompany adopts to achieve its objectives in a competitive situation.

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 gasi.e. CO2 produced during the production process. Pricing Of Kirloskar: The name Kirloskar itself is the mark of quality for the customer. Thecompany 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 theBuyer. So one can buy the Pig Iron at the company Site or can order. The company has across different Price terminologies/ Price Strategies. Theyare 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 calculatedaccording 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 Price of the companys pig iron has succeeded in reaching top market shareholding position in the Pig Iron market & Foundry. People prefer their company PigIron 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 exactlywith this proportion, where as others supply with range between i.e., 2.225% siliconetc., Pig Iron is melted once, almost 98-99% pure molten metal is obtained while asin it is 97% size is almost comfortable for feeding into less opening furnaces. Thecompany is not using any mark penetrating pricing strategy to penetrate the marketinstead it is using skimming price strategy. 7. SHARED VALUES: It refers to the core or fundamental values that are widely shared in theorganization and serve as guiding principle that are important. These values havegreat 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 notprofitable. Values act as an organizations conscience, providing guidance in time of crisis.The values and beliefs of the company ultimately they guide employeestowards valued behavior. It refers to the simple goal statements in determiningcorporate destiny to fit the concept; most people in an organization must share thesevalues. As per the value of the company Lets make everyones life, an enriched onethe company has implemented many techniques to see that this values areimplemented. The company tries to satisfy every which is dependent directly or indirectlywith it. The company has sponsored many schools and colleges through the truststarted by. The company tries to satisfy employees, shareholders, customers,government, families of employee, community.

PART C

SWOT ANALYSIS
STRENGTHS: The company has some its own strengths and competencies. They areas 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 someweaknesses. 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 tomultiple handling Higher basic coke consumption due tousle of metallic blast preheated inplace of stove.

OPPORTUNITIES: The company has some opportunities in future for its growth. They arementioned 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 Indiapresence 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 Indiapresence. THREATS: The company has some threats by competitors, market environment andsome legal & political changes. They are mentioned as under: New foundry grade production entry Increase price in coke New constricts in market Imposition of sales tax and VAT. Threats of using substitute products like plastic and fiber. Non exclusively with dealers