4.2.

1 Satisfaction with regard to SSP hospital 35

4.2.2 Satisfaction with regard to Service Dress 38

4.2.3 Satisfaction with regard to MONET 39

4.2.4 Satisfaction with regard to Canteen 40

4.2.5 Satisfaction with regard to Education 42

CHAPTER 1

INTRODUCTION

Under this chapter the significance of steel industry in India will be

discussed with Salem Steel plant as an example wherein the Welfare Measures

offered by the industry to its employees will be studied and analyzed in the

following chapters.

1.1 THE STEEL INDUSTRY IN INDIA

1.1.1 Steel

Steel is circular for the development of any modern economy and it is

considered to be the backbone of human civilization. The level of per capita

consumption of steel is treated as an important index of the level of socio-

economic development and living standards of people in any country. It is a

product of large and technologically complex industry having strong forward and

backward linkages in terms of material flows and income generation. Deposits

the fact steel products are susceptible to corrosion and have a relatively high
 strength to weight ratio, alternative materials have not been able to make many

inroads into its domain.

The steel industry in India symbolizes the general changes of a radical

nature, which have swept across the economic scene of the country during the

current decade. Latest technologies have been adopted and the outputs have

increased. The industry has moved up in the value chain and exports have risen

consequent to a greater integration with the global economy. The challenges

that confront Indian steel industry in the age of globalization are complex in

nature following the right strategy may help India to perform better in all areas in

a competitive world.

1.1.2. Steel Producers

There are mainly two types of steel producers, primary and secondary

producers. These two strategic groups together uses a mix of technologies, with

much lesser degree of backward integration and hold around 705 of the mild

steel capacity in the Indian steel industry. The third groups of tertiary producers

were the mini-steel plants, using electric, arc of induction furnaces and are very

small in size.

1.1.3. Export of Steel in India

Exports in the first 5 years were mainly due to recession in the domestic
iron and steel market. Once domestic demand revived, exports declined. India

once again started exporting steel only in 1975 touching a figure of 1 million

tones of pig iron and 1.4 million tones of steel in 1976-77. Thereafter, exports

again declined to pick up only in 1991-92. When the main producers exported

3.87 lakh tones which rose to 2.79 million tones in 1995-96 and 3.3 million tones

in 2001-02.

India’s major market for steel and steel items include USA, Canada,

Indonesia, Italy, west Asia, Nepal, Taiwan, Japan, SriLanka and Belgium. The

steel industry has to gear up to meet domestic as Well as global competition

terms of product range, quality, and price.

1.2. STEEL AUTHORITY OF INDIA LIMITED

Steel Authority of India Ltd, (SAIL), India’s largest corporate entity, with its

five integrated steel plants, three special steel plants and Ferro-alloy plant forms

the backbone of Indian Steel Industry. From ordinary safety pin to sophisticated

industrial applications. Steel Authority of India Ltd. (SAIL) is India’s largest and

one of the world’s leading steel procedures with a turn over of 22,000 cr.

Its Central Marketing Organization (CMO) and the International Trade

Division (ITD) market within and outside India SAIL’s vast portfolio of long, flat

and tubular products respectively. By-products and chemicals are marketed

directly by the respective steel plants. SAIL’s Raw Materials division

headquartered at KOLKATTA, manages India’s second largest mines network.

 SAIL is in the midst of organizational restructuring to bring greater focus on

its core business of making carbon steel. Making employees aware of the

market requirements, ensuring greater involvement of plants in marketing

initiatives, achieving cost leadership through rigorous cost cutting drives and

rationalizing manpower to bring down the total number of employees to

competitive levels are some other facets of the strategy to ensure sustained

profitability and growth.

SAIL’s ability to continuously grow in different market condition reflects the

inherent strengths of the company to manage its operations under the varying

and fast changing business environment over a long span of time. Its reservoir of

human talent and expertise supported by the latest state-of-art the technology,

forms the strength of its foundation.

In the new millennium, there is a strong focus on SAIL’s business activities

for customer satisfaction, adopting an approach for increased synergy between

production capability and market needs and ensuring supply of customized

products with shorter lead times.

The product mix is being continuously oriented to specific needs of different

market needs of different market segments. SAIL has been progressively

investing in technological up gradation of its plants and facilities for

environmental protection. Information Technology will be an important tool in

providing competitive advantage in the coming years. In the new millennium, the

accent in SAIL is to accelerate the process of change, adapt to emerging

competitive business environment and excel as a business organization both

 within and outside India.

SAIL has four integrated steel plants namely Bhilai Steel plant (BSP) in

Chhatisgarh, Durgapur Steel Plant (DSP) in West Bengal, Rourkela Steel Plant

(RSP) in Orissa and Bokaro Steel Plant (BSL) in Jharkhand.

SAIL has three special steel plants namely Alloy Steel Plant (ASP) in West

Bengal, Salem Steel Plant (SSP) in Tamil Nadu and Visvesvaraya Iron and Steel

Plant (VISP) in Karnataka.

Chief of Persona
and
Administration
Additional Chief
Vigilance
Officer
Asst.General Manager
Computer & Information
Asst.General Manager
Computer & Information

Chief Personal
Executive Manager
Director
Figure 1.2.1 ORGANISATIONAL STRUCTURE
 Asst.General
Manager (Technical
General Manager & Admin)
(W)

Deputy General
Manager Projects
Senior Manager
Safety
Deputy
General
Manager (MM)

Chief of
Communication

Chief of Finance
Manager

Asst.Genera
l Manager
Deputy General

Manage
r

Deputy General

Manager
Quality

Deputy General
 Mana
ger

Chief (Medical
& Health)

Senior Manager
(Town
Administration)

Mana
ger

(Administrati
on)

1.3. SALEM STEEL

PLANT

SSP located at the hills of Kanjamalai in Salem, South India, is a special

steels unit of steel Authority of India. State-of the art facilities for Hot rolling,
cold

rolling and Blanking have been established at Salem Steel through backward

integration over the years, sourcing the equipment and technical know-how,
from

the leaders in the respective fields from around the

world.

The government of Tamil Nadu commenced acquition of land in August

1970, with 43.38 acres for the project inauguration. Later, on September 16,

1970 Smt. Indra Gandhi, Prime Minister, laid the foundation on stone for the

Salem Plant. This was followed by acquisition of around 3973 acres including

the lands at Yercard, Kuchikaradu and poolampatti, for the plant, railway
siding,

and township and external water supply

scheme.

Salem Steel Plant (SSP) is the youngest member of SAIL; the public
sector

giant becomes the visitor to the latest technology and sophistication. To meet

the growing demand in 1970 the Prime Minister of India announced in the
Loc

Sabha the decision of the government to setup a steel plant at Salem in Tamil

nadu. Based on the feasibility report the government made an investment

decision in 1972, to establish an integrated special steel plant for the

manufacture of stainless steel, electrical steel and special sheets and

strips.

On Sep 13, 1977, the detailed project Report was approved by the

government and sanction was accorded for implementation of first stage to

be

completed in Sep 1981. Work progressed on schedule and the Hot Rolling
Mill
was commissioned on March 13, 1992. SSP produced all thickness and
finishes

of its product mix during the first year of operation itself stabilizing operation,
the

plant is steadily building up its capacity and achieved a break even point at
the

end of the third year of its operations 1984-

1985.

Salem Steel Plant (SSP) is a premier producer of international quality

stainless steel in India. Commissioned in 1981, the plant has a capacity to roll

186000 tones of hot rolled carbon and stainless steel sheets and coils per

annum. The plant has gone beyond its designed capacity and successfully
cold

rolled value added 0.13mm thick stainless steel. SSP can also supply hot
rolled

carbon steel in thickness of 1.5, 1.4, 1.25 mm. Its products have become a

household name ‘Salem Stainless’ in the domestic market and are widely

exported; besides meeting the requirements of 100 percent export oriented

units

and free-trade zones in India. In hot rolled special grade carbon steels, SSP
has

been recognized as a well known manufacture of boiler quality steels, the

plant

is also supplying LPG grade is 6240 steel in sheet form. The entire plant is

certified for the ISO: 9001 quality assurance and ISO: 14001 Environment

Management
Systems.

Organization
Goals
Mission Sustained growth through internal generation of resources is

the hallmark

of the corporate mission of

SAIL.

Vision To be the market leader and prosper in business through

satisfaction of

customer needs by continual improvement in quality, cost & delivery of

products

and
services.

Core
Values

1. Customer
Satisfaction

Customer satisfaction is the priority of every employee and the purpose

of

every job. This alone enables to achieve market

leadership.

2. Concern for
people

Developing competence and commitment of our people for enhancing

their

contribution is necessary for achieving customer

satisfaction.

3. Consistent
profitability
Consistent and signifi