You are on page 1of 56

Rayen steels (p) Ltd

CHAPTER 1
INTRODUCTION

M.P BIRLA Institute Of Management, Bengaluru

Page 1

Rayen steels (p) Ltd

1.1BACKGROUND OF THE STUDY


As part of the course curriculum of degree of Master of Business Administration of Bangalore University I am required to undertake an internship study in an organization in third semester. Internship training enables me to know the realities of the business and application of theoretical knowledge in practical environment. In fact the purpose of this training is to create the managers with greater adaptability and who can provide creative solution to the organization they work in, so it helps the student to become a complete manager for the industry and efficient. This internship report is an effort of mine for the fulfillment of the same. Rayen Steels (P) Ltd. was established in the year 25th Feb 2006 and it has started its commercial production on 20th may 2006. Rayen steel plant is located in the state of Karnataka. It is located in Haraginadoni village and it is 16km far from Bellary and 5 km far from Kudithini. Now days Steel industries has been increased due to LPG. This is one of the semi product industries. The product manufactured by this company is sponge iron. In this organization study I have studied different department in an organization and relationship between different departments duties and responsibilities, problems, conclusions, suggestions, recommdations ECT.. And also type of organization structure. Finally, it was a nice experience during my entire training period in Rayen Steels (p) Ltd. I feel, it was a great opportunity for me to work with this company and being a part of the company

M.P BIRLA Institute Of Management, Bengaluru

Page 2

Rayen steels (p) Ltd

1.2 INDUSTRY PROFILE


The story of industry and its growth begins with iron & steel. In India, significant additions to iron and steel capacity were made during the 50s & 60s by setting up new integrated steel plants at Rourkela, Bhilai, Durgapur & Bokaro, which involved large investments in the public sector. These plants are based on the conventional route of iron making, using blast furnaces. While the initial growth has been quite impressive, the 70's witnessed constraints in further growth due to the deteriorating quality as well as limited reserves of metallurgical 'coking' coal, the essential feed material for blast furnace and the spiraling capital costs in building economically feasible sizes of integrated steel plants. In advanced countries, and more so in the developing countries the need to find alternative technologies which do not require 'coking' coal for the production of iron and steel was being felt
However, considering its potential as relevant to our raw material situation, the Government of India decided to establish a semi-commercial 'Demonstration Plant' so that raw materials available in the country could be extensively tested and processed regimes developed. It was envisaged that the demonstration plant would provide the necessary interface for developing.

PLANT-WITH SOLID FOUNDATIONS


Taking note of the developmental nature of the project and its relevance to the Indian scenario of secondary steel making route, the UNDP and UNIDO came forward to provide substantial assistance in the establishment of the plant. Implementation of the project to setup the demonstration sponge iron plant at Paloncha near Kothagudem in Andhra Pradesh was entrusted to the Sponge Iron India Limited (SIIL) an enterprise of the Government of India and the Government of Andhra Pradesh. Construction of the plant, with the capacity of 100 Tonnes per day and based on the rotary kiln process started in July, 1978. The well equipped laboratory and other support facilities were established with UNIDO's assistance ahead of the construction of the plant enabling the essential laboratory work on Indian Ores and Coals to be carried out even before commissioning of the plant. The plant went into regular operation in November, 1980 after which efforts were directed at operating the plant with different combinations of ores using coal from local 'Singareni' mines as reductant, adjusting the process M.P BIRLA Institute Of Management, Bengaluru Page 3

Rayen steels (p) Ltd parameters to local conditions and effecting modifications to the plant to achieve a high degree of capacity utilization. As a result of all these measures and the care given in the training of operating personnel, it has been possible to achieve over 90% capacity utilization in the very first full year of operation. Another significant development has been to maintain the operation of the plant on 100% coal and achieve long campaign lives. Accordingly, the Company took on the work of setting up second unit of 100 TPD capacities at the same location. Construction of this second unit was completed in a record time and was commissioned in October, 1985. A significant achievement in setting up the expansion unit is that the plant was designed and built with total in house engineering expertise. The new unit started operating at the rated capacity with in a few days of its start up and continues to maintain high levels of productivity. Design and engineering capability within the country for setting up commercial plants

PLANT WITH TECHNOLOGY UPGRATATION


In the rotary kiln considerable quantity of fines in the product between 3 and 5 mm in size are generated which cannot be directly used in electric arc furnaces, because they tend to get blown away while charging into the furnace. To overcome this problem and to utilize this hitherto considered waste material, the Company engineered and builds a cold briquetting unit, the first of its kind in the country, for production of high density Sponge Iron briquettes with improved carbon content a product ideally suited as feed stock for electric arc furnace. Nearly 40% of heat energy is lost through waste gases going up the stack in the rotary kiln process. Harnessing this wasted energy could result in generating enough electric power to fully meet the requirements of both the Sponge Iron units, through out the year. A project costing 92 million Rupees was conceived and put into action. Utilizing about 50,000 normally metric cubic meters of waste gas from both the rotary kilns, two waste heat boilers generates sufficient super heat steam at temperature of 400 degrees Celsius to generate about 4 to 5 MW of electric power. The total power requirement of both the Sponge Iron units being around 2 MW, nearly 3 MW of access power is available from the captive power plant, which uses the otherwise wasted heat energy from the kilns. Moreover the cost of this internally generated power works out to nearly 1 1/2 of the price of power obtained from the local electricity grid. In generating this wealth from waste, Sponge Iron India Limited has broken new grounds, in drastically improving the thermal efficiency of the rotary kiln process. M.P BIRLA Institute Of Management, Bengaluru Page 4

Rayen steels (p) Ltd

PLANT WITH TIMELY TECHNOLOGY


In India, non coking based DRI has been a timely technology in establishing a viable and cost effecting new role in steel making. A note worthy feature of the technology developed by SIIL in his attainment of long campaign lives even with the use of high ash coals up to 40%. The decade of 80s has been a period exiting experience for Sponge Iron India, investigating, experimenting, modifying, innovating and updating Sponge Iron Technology in India. The singular achievement of Sponge Iron India has been the prime source of inspiration for many a Sponge Iron Plants to sprout at many locations in the country. Of these, as many as five new plants were set up with total Consultancy support from SIIL. One of these, a 30,000 TPY plant, is designed to operate with Lignite as reductant. SIIL has also undertaken semi-commercial scale test campaigns for the reduction of Limenite. SIIL has developed the technology and designs for setting up coal based Sponge Iron units in wide range of modules up to 150,000 Tonnes per annum.

PLANT-GOING GLOBAL

On behalf of UNIDO, Sponge Iron India successfully completed large number of test work assignments on raw materials drawn from a number of countries like Niger, Zambia, Pakistan, Egypt, Nepal and Vietnam. The experience gained in designing and building, as well as operating Sponge Iron Plants and the availability of one of the best equipped metallurgical test centers, have made SIIL a unique consultant in the field coal based Direct Reduction Technology. Comprehensive consultancy work for the conversion of a cement kiln to produce Sponge Iron in Vietnam was one of the prestigious assignments undertaken by SIIL. The work included engineering design supply of equipment from India, supervision of construction, start up and stabilization of production and performance guarantees. Sponge Iron India has also provided

M.P BIRLA Institute Of Management, Bengaluru

Page 5

Rayen steels (p) Ltd

PLANTS-CONCEPTS TO COMMISSIONING

With its rich experience in designing and establishing a number of sponge iron plants based on variety of raw material combinations, both within the Country and abroad, Sponge Iron India is in an exclusive position to render the complete range of engineering and consultancy services for coal based sponge iron plants. The spectrum of SIIL services include: a) Comprehensive testing of raw materials for the process. b) Preparation of project report for an investment decision. c) Basic and detailed engineering of the reduction unit and all the auxiliaries from raw material preparation to storage and handling of finished products. d) Preparation and selection of mechanical, electrical and instrumentation equipment including refractories. e) Inspection of equipment to ensure compliance of specifications and for meeting the required standard from operational point of view. f) Assistance in supervision of erection, start-up and commissioning. g) Scheduling and monitoring the implementation of project with assistance in trouble shooting during erection and commissioning. h) Assistance in commissioning the plant and optimizing the plant operations. i) Full performance guarantees for achieving rated capacity utilization.

PLANTS-FOOTPRINTS TO THE FUTURE

World wide, recent trends in Steel have realized the growing potential in the Secondary route- Electric Steel making. With reduced availability of scrap and the limited scope for further growth in HBI, the only answer for providing 'Metallics' to this growing sector lies in coal based DRI. And when it comes to coal based DRI, Sponge Iron India Limited, the 'Technology Corporation', can provide cost effective solution.

M.P BIRLA Institute Of Management, Bengaluru

Page 6

Rayen steels (p) Ltd

1.3 COMPANY PROFILE


RAYEN STEELS PVT LTD. Is a company which involves in producing sponge iron as a raw material for the steel manufacturing industries. It has been established on 25th Feb 2004 and it has started its commercial production on 20th May 2004. Within the short span of time it has achieved an annual turnover of 30 crs LOCATION Rayen steel plant is located in the state of Karnataka. It is located in Haraginadoni village and it is 16km far from Bellary and 5 km far from Kudithini. In general selection of suitable site for the sponge iron plant is governed by following factors: Proximity to raw materials Proximity to consuming centers 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 the market centers i.e., secondary steel making units. As one of the two main raw materials i.e., iron ore is availability in abundance in Sandur sector, the ideal location of plant is considered to be near Bellary. In so far as coal is concerned, the nearest coal field is Singareni Collieries (SCCL) from where acceptable quality of coal can obtained. As the quality of coal required is only 40,000 TPS its a availability and transportation from SCCL by road in feasible. Apart from this if needed imported coal can also be considered through Chennai port in fact, Jindal Vijayanagar steel is obtaining imported coal for their operations.

As regards marketing the product, the same can consumed by large number of induction furnaces of even by mini blast furnaces located in the south. In fact, use of sponge iron to some extent in combination with iron ore would tend to reduce the coke rate of the blast furnace

M.P BIRLA Institute Of Management, Bengaluru

Page 7

Rayen steels (p) Ltd

PLANT LAYOUT
The following major units are envisaged for the proposed sponge iron plant. Raw materials storage and handling Day Bins Rotary kiln and Rotary Cooler Project separation Waste gas handling system Water supply system laboratory Maintenance shop Central stores Sub-station Control room and M.C.C Administrative building

The raw material storage is located close to the raw material handling plant and the day bins. The kiln cooler building is also located close to the raw material day bins. A well planned road net work is proposed inside the plant connecting all the units of the plant.

Quality Policy
Rayen steels Limited is committed to comply with the requirements of the Quality Management System and to achieve continual improvement in its operations through it for the production and marketing of sponge iron. In order to attain this, the company shall strive to achieve its quality objectives through annual business plans and review the quality policy periodically to ensure its continuing suitability to company operations.

M.P BIRLA Institute Of Management, Bengaluru

Page 8

Rayen steels (p) Ltd

Ownership pattern
Rayen organization setup under private limited co.. The firm consists of 4 board of directors 1. Mr. ObulReddy.P 2. Mr. Prakesh.S 3. Mr. Manohar.A 4. Mr. Ramu.G The authorized share capital of the company is 7,00,00,000 Which is divided in to 70,00,000 equity shares of 10 Rs each. Total investment is 1473.33 lakhs which is divided into following:a) Subscribed share capital 442.00 lakhs b) Term loans from Institution/banks 1031.33 lakhs

RAW MATERIALS
The principle raw materials required for the plant are: LUMP IRON ORE COAL LIMESTONE

Competitors Information
The major competition they face is from the local manufacturers. And a small range of competition from other national firms. The local competitors are:a) HOTHUR STEELS b) PRAGATHI c) SARJELLI STEELS d) BENACA STEELS e) BELLARY STEELS & ALLOY LTD f) GAYATHRI METELS

M.P BIRLA Institute Of Management, Bengaluru

Page 9

Rayen steels (p) Ltd

Infrastructure Facilities
38 Acres of land Building in square feet:- 40000 Sq.feet machinery worth Rs:-2crore. Furniture Worth Rs: - 1lakhs. Computer aided Machinery worth Rs:-3lakhs. L&T JCB Rs:-18 lakhs. New technology adoption. Killen & Coolers. Stock House 10,000 Tonnes. Storage Shed 180 Tonnes. Heavy machinery like Hitachi, Jeb, Roller.

Work Environment
1. Maintaining safety and cleanliness measures. 2. Control of effluents. 3. Convenience and comfort during work that is operatives posture, seating arrangements. 4. Workmen safety measures like maintenance of machines and tools, providing guards, helmets, goggles, etc. 5. Workshop sanitation and cleanliness, temperature, humidity ventilation, lighting, etc.

Conveniences
1. Providing of drinking water. 2. Canteen services. 3. Cloak rooms, rest rooms, etc. 4. Transport.

M.P BIRLA Institute Of Management, Bengaluru

Page 10

Rayen steels (p) Ltd

Workers health services


1. Dispensary 2. Ambulance 3. Emergency aid 4. Medical examination 5. Giving hints on health

Work Flow Model


Raw material Screening Crushing Store house ABC Unit Klin Cooling house Production house

M.P BIRLA Institute Of Management, Bengaluru

Page 11

Rayen steels (p) Ltd

Product Profile What is sponge iron?


Sponge iron is a metallic product is produced by direct reduction of iron ore or pellets in the 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 (DIR). 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 in the ore. The Sponge Iron has a highly porous structure when viewed under the microscope and hence this product is called Sponge Iron.

Uses 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.

M.P BIRLA Institute Of Management, Bengaluru

Page 12

Rayen steels (p) Ltd Due to acute shortage of scrap world wide, sponge iron has become the only alternative feed stock for secondary steel making and hence its demand is growing day by day. This is a abundantly reflected by the manner in which he price it commands in the market.

Area of operation
As rayen steels is a small scale industry it function only in the national market sells its product to the local customers within India. If they get any best offer within their production capacity then they go for export in the best price.

M.P BIRLA Institute Of Management, Bengaluru

Page 13

Rayen steels (p) Ltd

1.4 VISION & MISSION VISION

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. Installation of pre-heated power plant, which helps in reducing the power cost. The company is planning to increase their production, presently 100 tonnes to 200 tonnes per day in future. To reduce cost of production.

MISSION

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

M.P BIRLA Institute Of Management, Bengaluru

Page 14

Rayen steels (p) Ltd

OBJECTIVES OF THE STUDY

To study about different departments like marketing, operations, HR, MIS and so on. To study and understand the inter-relation among different departments. To find out the roles, duties, responsibilities of each personnel in the organization. To find out the reporting offices and subordinates of personnel in each departments. To find out the type of organization structure. To look out for organization problem, if any.

SCOPE OF THE STUDY


The scope of the organizational study is wide. The study helps to know about the work culture of the organization. It also helps us to enable about the duties, responsibilities, and functions of each departments in achieving the organizational goal of the company. Moreover, it helps to ascertain the interrelationship among different departments in the organization. It also helps us to know about the organization hierarchy, structure and its policies.

M.P BIRLA Institute Of Management, Bengaluru

Page 15

Rayen steels (p) Ltd

CHAPTER 2
ORGANISATION STRUCTURE

M.P BIRLA Institute Of Management, Bengaluru

Page 16

Rayen steels (p) Ltd

2 ORGANISATION STRUCTURE APPLICATION OF 7 S MODEL


The 7-S-Model is better known as McKinsey 7-S. The two persons who developed this model are, Tom Peters and Robert Waterman, have been consultants at McKinsey & Co at that time. They published their 7-S-Model in their article Structure Is Not Organization (1980) and in their books The Art of Japanese Management (1981) and In Search of Excellence (1982). The Seven S architecture

Structure

Strategy

System Shared Value

Skills

Style

Staff

M.P BIRLA Institute Of Management, Bengaluru

Page 17

Rayen steels (p) Ltd

STRUCTURE
Definition of Structure: Structure describes the hierarchy of authority and accountability in an organization these relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structurespyramidal, matrix or structured ones to accomplish their goals. A structure is the formalizing of relationships, roles and responsibilities in order to recognize and perform work.

In simple terms, structure is a pattern in which various parts or components are inter-related and interconnected. So, organization structure is a pattern of relationships among various activities and positions. Because various people hold these positions, the structure defines the relationships among people in the organization Organization structure chart has been shown as under..

M.P BIRLA Institute Of Management, Bengaluru

Page 18

Rayen steels (p) Ltd

ORGANIZATION CHART
BOARD OF DIRECTORS

Executive Director General Manager

Projects Manager

Accounts Manager

HR & Admin Manager

Materials D.G.M

Production, Planning & Plant maintenance Manager Lab testing H.O.D. Processing H.O.D Mechanical H.O.D Electrical & Instrumentation H.O.D Administration Plant Dept H.O.D

H.R Salaries & Incentives Recruitment Training

ADMIN

Raw material & Finished product Movement Stores Dept Purchase Dept Vehicle

Admin H.O.

Admin Plant

Maintenance

Civil Govt. Liasaning Internal auditing Waste handling House keeping Iron Ore sorting Safety Security Vehicle maintenance

M.P BIRLA Institute Of Management, Bengaluru

Page 19

Rayen steels (p) Ltd

Organizational structure performs in the following major functions:


Implement all the statutory requirements related to receipts storage and dispatch of product. Impart adequate training to all subordinates enabling them to perform their duties satisfactorily. Develop and maintain good relationship with all customers and other connected agency. It undertakes a wide variety of activities through devices such as departmentalization, specialization, division of labor of delegation of authority.

In RAYEN, each department is interlinked with other departments has to maintain a good control with other departments

1. STRATERGY
It refers to the set of decisions and actions at gaining a sustainable competitive advantage.

OBLIGATIONS Towards customers and suppliers:


To provide prompt, courteous and efficient service and quality products at fair and reasonable prices.

Towards suppliers:
To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary industries.

Towards employees:
Develop their capability and advancement through appropriate training and career planning.

M.P BIRLA Institute Of Management, Bengaluru

Page 20

Rayen steels (p) Ltd

Towards community:
To develop techno-economically viable and environment-friendly products for the benefit of the people. Encourage progressive indigenous manufacture of products and materials so as to substitute imports. To ensure safety in operations and highest standards of environment protection in its manufacturing plants and townships by taking suitable and effective measures.

Financial objectives:
To ensure adequate return on the capital employed and maintain reasonable annual

dividend on its equity capital. To ensure maximum economy in expenditure. To manage and operate the facilities in an efficient manner so as to generate adequate

internal resources to meet revenue cost and requirements for project investment, without budgetary support. To develop long-term corporate plans to provide for adequate growth of the activities of the corporation. To endeavor to reduce the cost of production of sponge iron by means of systematic

cost control measures.

SYSTEM
System refers to all the rules, regulation and formal procedure and informal that complement organizational structure. It includes buying and selling, planning and control system, capital budgeting system, recruitment, training and development schemes. In RAYEN there is a separate department to plan and control the buying activities in this department the organization has to account for how much raw materials the trucks have to bring. The buying is planned according to demand of the sponge iron in the market. Recruitment is the process of searching prospective employee and the recruitment of employees are carried out at the head office, Bellary in the human resources department. In case of vacancies or in case of appointing from outside, the RAYEN recruit people through consultancies, employment M.P BIRLA Institute Of Management, Bengaluru Page 21

Rayen steels (p) Ltd exchange and sometimes it will be published in news papers. They conduct interview. The qualified suitable candidates selected to the right job and they will provide training and development programs and opportunities and The minimum period of training varies from a week to a month They conduct

STYLE
Style of the organization is the evident through the patterns of actions taken by the member of the top management team over a period of time. Reporting relationships may also convey the style of the organization. Leadership style of managers of RAYEN STEELS PVT LTD: Maintain discipline in the organization. Gives instructions and orders to the subordinates. Listened to subordinates and responds to their needs. Takes important decisions for the group. Maintain unity in the organization. Inspires and motivates the various members of his group. Achieve or formulate objectives for his groups. Maintain communication in the organization.

The manager plays a vital role (top management). The manager of the department takes all the plans, policies, procedure, etc. The department heads like marketing, security, finance, R&D, HR, and buying has the authority to take decisions regarding their department. It is said, Whenever some responsibility is given some authority should be given. Like manager takes decisions regarding sales, dealers of different marketing strategies. Like this finance manager takes the decisions regarding preparing profit and loss A/C and Annual Report of the corporation.It has very good quality circle program through which the employees and workers are allowed to discuss any existing problem or can healthy suggestion regarding any problems to the department manager. This will build healthy relationship between manager and subordinates and workers.

M.P BIRLA Institute Of Management, Bengaluru

Page 22

Rayen steels (p) Ltd

STAFF
Staffing is the process of acquiring human resource for the organization and assuring that they potential to contribute to the achievement of the organization goals. Staffing includes the selection, placement, training and development of appropriate qualified employees. A standard selection process has the following steps screening application forms, selection test interview, checking of references and placement.

PLACEMENT
After a candidate is selected for employment, he is placed on the job. Initially the placement may be on probation, the period of which may extend from six months to one year. After successful completion of the probation period, the candidate may be offered permanent employment in the organization.

SKILLS
Skills refer to an organization dominant capabilities and competence with employee. Every organization needs to has well trained and experience people to perform the required activities. A skill is an individual ability to translate knowledge into action. The aim of organization is to provide quality to their customer satisfaction, consistent quality to all. The organizations success depends on the skills of the employees.

RAYEN STEELS CAPABILITIES IN THE SECTOR OF OPERATIONS IN STEEL INCLUDES:


Technology service Technology feasibility Inspection Quality control Safety Quality auditing Training Page 23

M.P BIRLA Institute Of Management, Bengaluru

Rayen steels (p) Ltd

SHARED VALUES
It refers to set of values and aspiration that goes beyond the conventional formal statement of corporate objectives. The organizational cultures can be viewed as system of shared values. In Rayen steels every employee has to participate in taking the decision in the organization. The finance department has to maintain proper accounts. The main aim of employee is to develop the organization, their activities and their public service with efficiently.

M.P BIRLA Institute Of Management, Bengaluru

Page 24

Rayen steels (p) Ltd

CHAPTER 3
FUNCTIONAL AREAS

M.P BIRLA Institute Of Management, Bengaluru

Page 25

Rayen steels (p) Ltd

3 FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION 1. HUMAN RESOURCE DEPARTMENT 2. FINANCE AND ACCOUNTS DEPARTMENT 3. MARKETING DEPARTMENT 4. PRODUCTION DEPARTMENT 5. LOGISTICS

3.1.HUMAN RESOURCE DEPARTMENT A)OBJECTIVES OF HRM


1. Social objectives 2. Organizational objectives 3. Functional objectives 4. Personal objectives

SOCIAL OBJECTIVES
The social objective of HRM is to seek and to ensure that the organization becomes socially responsive.

ORGANIZATIONAL OBJECTIVES
It makes sure that HRM is not a standalone department but rather a means to assist the organization with its primary objective.

FUNCTIONAL OBJECTIVES
It reminds the HRM that it has only functional value and should not become too expensive.

M.P BIRLA Institute Of Management, Bengaluru

Page 26

Rayen steels (p) Ltd

PERSONAL OBJECTIVES
It assists employees in achieving their personal goals. To fulfill their personal financial and wealth requirements. To make the employees well trained and skillful workers in the organization.

HR POLICIES
They continuously foster a feeling of community amongst their work-force. They work as a collective force towards a goal that benefits everybody. Apart from on-the-job training and technical training, numerous programs on general management and behavioral topics are conducted each year. Their remuneration and incentives match among the best corporate organizations in the world.

D. RECRUITMENT PROCESS
In this organization the recruitment process consists both internal factors and external factors. Whenever there is vacancies and need for employees they go for recruitment process. Here the ob analysis process begins and by analyzing the mgt will come to now in what number the employees needed and etc. They recruit from reference, employment exchange and consultancies.

E. SELECTION

After completing the recruitment process then they step into the selecting process. Verification, screening, elimination and selection.. They call upon the selected applications for the interview. In this procedure they try to analyze the applicant whether he is having the required knowledge or not, he is suitable to work in this organization or not, about his past experience if they got and many more about his of her personal matters, etc.

M.P BIRLA Institute Of Management, Bengaluru

Page 27

Rayen steels (p) Ltd After completing the interview they have to attend the medical examinations or tests conducted by the company and they have to qualify in it.

F. TRAINING AND DEVELOPMENT


After appointing the applicant if he or she is into functional level training will be given to them. But if they are into mgt level development programmed is conducted to them. As we know there are 2 types of training we have like on the job training and off the hob training. Here in this organization they have on the job training. Here thy have to work in; team and with experienced persons and they have to get the training from them. As per as development program is concerned the mgt will arrange a seminars from the experts in the related field.

G. EMPLOYEE WELFARE WORKING ENVIORNMENT


Maintaining safety and cleanliness measures. Control of effluents. Convenience and comfort during work that is operatives posture, seating arrangements. Workmen safety measures like maintenance of machines and tools, providing guards, helmets, goggles, etc. Workshop sanitation and cleanliness, temperature, humidity ventilation, lighting, etc.

. CONVENIENCES
Providing of drinking water. Canteen services. Cloak rooms, rest rooms, etc. Transport.

M.P BIRLA Institute Of Management, Bengaluru

Page 28

Rayen steels (p) Ltd

H. WORKERS HEALTH SERVICES


Dispensary Ambulance Emergency aid Medical examination Giving hints on health

M.P BIRLA Institute Of Management, Bengaluru

Page 29

Rayen steels (p) Ltd

3.2. MARKETING DEPARTMENT

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

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

4. TARGET MARKET CUSTOMER NEEDS


Integrated marketing and profitability

5. OBJECTIVES OF MARKETING
To take care of the sales and dispatching them properly To look after the central excise matters pertaining to the sales of the department.

6.POLICIES
1. Keep a watch on the market conditions. 2. Branch officials and agents should always be in touch with customer. 3. RAYEN always prefer to have direct contact with the plot owners for timely supply of raw materials. M.P BIRLA Institute Of Management, Bengaluru Page 30

Rayen steels (p) Ltd 4. Orders are always taken on first cum first basis and credit sales are negotiated only after knowing buyers credibility and prior approved of management. 5. The transporter approaches marketing section for billing and other various document required as per government rule.

7. PRACTICES/PROCEDURE

1. Only those employees who know the local language are sent to the customers. 2. Marketer makes the customer to know the quality checks done at RAYEN. 3. The customers financial strength and weakness and requirements are known to the branch officers and agents.

8. MARKETING MIX OF RAYEN 1.PRODUCT: Sponge iron Quality : High quality Branding: RAYEN STEELS PVT LTD Packing Colour
: Not required : ash

After sales service: Good

2. PRICE
Cash transaction: As Price is fixed by the sponge iron association it cant be changed. It is useful to maintain good and healthy relation with competitors.

M.P BIRLA Institute Of Management, Bengaluru

Page 31

Rayen steels (p) Ltd

Cash discount: It is left to the company weather to discount or not if it is paid from
cash.

Credit period: 30 to 45 days

3. PROMOTION Public relation: Good relationship Advertising & publicity: Not needed

4.PLACE Channels of distribution: Direct selling and commission agents. Mode of transport : By truck only

9.MARKETING REASEARCH DEFINITION OF MR


American Marketing Association defines marketing research as the systematic planning, gathering, recording, analyzing and interpreting of data for application of specific marketing decisions.

Learning the wants and needs of buyers by using such sources are: Primary sources Secondary sources

M.P BIRLA Institute Of Management, Bengaluru

Page 32

Rayen steels (p) Ltd

PRIMARY SOURCES
The data collected through the observation, by personally asking questions to managers, workers and others.

SECONDARY SOURCES
The data also collected through the company and Manuals.

M.P BIRLA Institute Of Management, Bengaluru

Page 33

Rayen steels (p) Ltd

3.3. FINANCE AND ACCONTS DEPARTMENT CAPITAL COST


The esteemed capital cost of plant is Rs. 1473.33 lakhs (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 quotations/offers received for similar plant of our other clients/s.

MEANING OF FINANCING
The cost of the project would be financed in the following manner

1. Equity (own) 30% 2. Term loans from Institution/banks 70%

Rs. 442.00 lakhs

Rs. 1031.33 lakhs

Total

1473.33 lakhs

M.P BIRLA Institute Of Management, Bengaluru

Page 34

Rayen steels (p) Ltd

FINALCIAL RESULTS/RATIOS
Taking into consideration estimated cost of the project, means of financing as mentioned above on the working results projected over a period of ten years the financial aspects of the project are as follows:

Operating cost g. p ratio Operating profit Break even point Payback period Internal rate of return

Rs 1828.61 lakhs on 3rd year Rs. 38.58 lakhs on 3rd year 0.33% on 3rd year 12.56% on 3rd year 2 years 45.43

M.P BIRLA Institute Of Management, Bengaluru

Page 35

Rayen steels (p) Ltd

3.4. PRODUCTION DEPARTMENT 1. RAW MATERIAL STORAGE AND HANDLING

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 into the ground hoppers. From the ground hoppers, the materials would be conveyed to respective vibrating screens by means of belt conveyors and ultimately the sized material would be stored in the earmarked day bins. One road weight bridge would be provided for weighing all the incoming materials to the storage yard and outgoing materials from the storage yard.

2. STOCK HOUSE

The reduction plant would have a stock house housing the day bins for storing sufficient requirements of various raw materials. Here, sized iron ore, sized fine coal, sized feed coal and limestone will be M.P BIRLA Institute Of Management, Bengaluru Page 36

Rayen steels (p) Ltd stored in separate RCC 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.

3. KILN AND COOLER

For Direct Reduction of Iron ore, two rotary kilns which is the main/major facility. 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 materials will be dried and heated to the reduction temperature of approximate 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 carbon and volatiles in 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 refractory. Light diesel oil or H.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 in normal operation. However, in the event of any thermal imbalance occurring during operation, fuel oil will required to be used for correcting the imbalances in the shortest possible time.

M.P BIRLA Institute Of Management, Bengaluru

Page 37

Rayen steels (p) Ltd The product from the kiln will be cooled in a Rotary Cooler by means of indirect spray of water. Arrangement for by passing 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 adding the required make up water.

4.PRODUCT SEPARATION

The cooler discharge consisting of sponge iron (lumps and fines) which are magnetic and char and dolochar which are non magnetic will be conveyed to magnetic separators. Magnetic fraction of + 3mm will be conveyed to 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.

5. WASTE GAS HANDLING 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 gases. Thereafter, the flue gases pass through an after burning chamber where any un-burnt carbon monoxide present in the gases 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 M.P BIRLA Institute Of Management, Bengaluru Page 38

Rayen steels (p) Ltd then through a 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 RCC stake of 40 meter high.

6.STORAGE SHED
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 customers trucks will be directly loaded from the sponge iron bin. However, in case the bin is full sponge iron from the bin will be transported to a covered shed for storage.

7. CONTROL ROOM

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

M.P BIRLA Institute Of Management, Bengaluru

Page 39

Rayen steels (p) Ltd

8. 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 through 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.

9.COMPRESSED AIR FACILITIES


To meet the demand of compressed air, two water cooled compressor of 400 cfm and at a discharge pressure of 6 kg/cm sq is installed. This compressed air is used for operating the grease pumps and the pneumatic seals to kiln and cooler.

For distribution of compressed air to different consuming points, an adequate distribution net work of pipelines has been provided.

10.LABORATORY FACILITIES

M.P BIRLA Institute Of Management, Bengaluru

Page 40

Rayen steels (p) Ltd Laboratory equipments required are jaw crusher/roll crusher, discpulveriser, muffle furnace, drying cabinet, rotary sieve shaker, C and S apparatus, satmagan, electronic balance and glassware.

11. VENTILATION AND AIR CONDITIONING FACILITIES


The main system of ventilation for most of the buildings is naturally ventilated. Mechanical ventilation is provided in such premises where natural ventilation cannot provide the desired effect. The control room shall be centrally air conditioned. Local exhaust fans are provided where necessary for removing objectionable fumes and vapors. De-dusting system has been considered for removing dust generated at transfer points in the handling, transportation of raw materials and finished products. Exhaust ventilation are provided for the switch gear room of the main step down sub-station, transformer station, store room and toilets.

PROCESSING DEPARTMENT:
Here 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 main component in this production process is that Kiln The following are main components are included in the kiln. 1. Kiln main drive: It is used for rotating kiln. 2. Cooler main drive: It is used for cooling after all process the products should be cool. 3. Sheller fan: it is used for controlling temperature that is increasing or decreasing the temperature. 4. Lube compressors: it is used for coal feed into Kiln by pressure. 5. Iron weighing feed: it is used for transfer raw materials into kiln. 6. ESP ID fan: it is used for maintaining a pressure. 7. Feed coal range: it should be range +14-1. 8. Injection coal M.P BIRLA Institute Of Management, Bengaluru Page 41

Rayen steels (p) Ltd 9. Dolomite 10. CB Fan:it is used for output increasing to temperature RACF: Rotary Air Lock of System. 11.Poll: it is used for controlling air pollutions. 12.Char coal: wastage ECT

Production capacity of plant: Every day the capacity of production in this plant 230 tones sponge Iron per day

CENTRAL 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.

12. POLLUTION CONTOL FACILITIES a) AIR POLUTION CONTROL

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.

M.P BIRLA Institute Of Management, Bengaluru

Page 42

Rayen steels (p) Ltd 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, 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 after burning 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 40 m high stack.

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

c) NOISE POLLUTION CONTROL


Due to technological reasons, it may not be practicable to entirely eliminate the noise. However, noise levels could be brought down to the acceptable level wherever possible. The major equipment of high noise production can be identified as ID fan, de-ducting 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 M.P BIRLA Institute Of Management, Bengaluru Page 43

Rayen steels (p) Ltd 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.

13. WATER GAS EMANATING POINTS AND CONTROL DUST EMISSIONS AND CONTROL
From the transfer points at crushing, screening, cooler discharge and product separation, some quantity of dust is eliminated. To avoid the pollution of the environment, the de-dusting points are provided at these three places. In this system, the suction ducts are provided at various points and connected to a bag filter house. One ID fan is used to create suction and the dust particles collected in the hopper are drawn out with the help of a rotary valve, for humidifying the dust to avoid flying of the same.

14. ELECTRICS a) POWER REQUIREMENT


The power requirement of the proposed Sponge Iron Plant is estimated as 1500 KVA on 30 minute maximum demand arsis with an annual energy consumption of 5 million KWH. HT power shall be made available at plant site by KEB.

b) EMERGENCY POWER SUPPLY

M.P BIRLA Institute Of Management, Bengaluru

Page 44

Rayen steels (p) Ltd One set of 500 KVA rating at 415 V, 50 Hz is provided to cater to the emergency power requirement of vital units of the plant requiring uninterrupted power supply. The DG set will be complete with auxiliaries like AMF panel, day oil storage with transfer pumps etc, and necessary instrumentation.

M.P BIRLA Institute Of Management, Bengaluru

Page 45

Rayen steels (p) Ltd

CHAPTER 4
SWOT ANALYSIS

M.P BIRLA Institute Of Management, Bengaluru

Page 46

Rayen steels (p) Ltd

4 SWOT ANALYSIS

M.P BIRLA Institute Of Management, Bengaluru

Page 47

Rayen steels (p) Ltd

STRENGTHS
RAYEN STEELS PVT LTD is a reservoir of skilled and experienced personnel. RAYEN STEELS is located near the major power generating stations both hydra and thermal like Raichur, Munirabad, Shalvathe and Kalinga all these stations are connected to the grid at Munirabad about 55kms from Bellary. Commissioning the sponge iron plant as reduced the dependability on scrap. Good corporate image of RAYEN enhances the level of confidence in manager. RAYEN has a customer friendly approach and improved customer orientation. Non-existence oflaour unions. Customer percentage of RAYEN is fair and of reliable supplier. Market demand for sponge iron is more. Young and enthusiastic managers and staff.

WEAKNESSES:
RAYEN is largely dependent on bank loans rather than other sources. Concentrated on south India market and neglected other parts. It has to depend on other sources for the procurement of raw materials. RAYEN is facing a lot of problems like transportation, diesel& fuel, break downs, Etc .

M.P BIRLA Institute Of Management, Bengaluru

Page 48

Rayen steels (p) Ltd

OPPORTUNITIES:
Efforts are on for reducing the power cost, which is key element in the process of sponge manufacture. Since there is a growing demand for the steel, and steel industry of 75% uses the sponge iron as their key raw material, so by which it symbolizes the growth of demand for sponge iron. This year RAYEN has given best of its performance, so it will imbibe a new enthusiasm in its employee to do better. Steel industries such as Jindal, Kalyani and Mukunda have come up in Bellary region from which demand for sponge is more. Availability of well educated young and dynamic employees, for the growth of organization. Increase of govt role in the monitoring the sponge iron industry in bellary , which can make the game fair play between other players in industry. Govt regulations on the allotment of the very important raw material in manufacturing process coal. Govt initiatives on the financing schemes for establishing of new plants in the industry. Last but not the least the todays trend of growing prices of steel and the demand from the foreign markets like china(for reason of prestigious Olympic games.)

THREATS
Increased competition in the market with other domestic producers. Obsolescence of existing technology. High cost of raw materials. Tight money market situation. Less accumulation of funds from promoters. They cannot change the selling price of the product as it is an administered pricing by sponge iron association.

M.P BIRLA Institute Of Management, Bengaluru

Page 49

Rayen steels (p) Ltd

CHAPTER 5
FINDINGS SUGGESTIONS AND CONCLUSION

M.P BIRLA Institute Of Management, Bengaluru

Page 50

Rayen steels (p) Ltd

LOGISTICS DEPARTMENT Entry of number of vehicle used for logistics Maintenance of entry records which includes Entry of vehicle register no Weight Time(in and out) Purpose Department connected with Raw materials contained The vehicle entries have been reduced due to restrictions laid by the government on the mining of iron ore in BELLARY.

M.P BIRLA Institute Of Management, Bengaluru

Page 51

Rayen steels (p) Ltd

5.1MAJOR FINDINGS
Concentrated on south India market and neglected other parts of the nation as well as country. Industrial relations are poor in nature and it is facing heavy competition in the market. Production technology and capacity of production is lower in the scenario. Older concepts of management. Training facilities and techniques are not in the process. Poor working environment and culture.

M.P BIRLA Institute Of Management, Bengaluru

Page 52

Rayen steels (p) Ltd

5.2SUGGESTIONS
To improve their production technology, so as to improve their production capacity. Rayen as having a competitive advantage so as to try to enter national markets to increase their area of reach. To develop industrial relations, so as to make them better competitive then the competitors. It has to strive for the market leadership, by improvising their quality production methods and costs. Improve the organizational culture or work environment. To provide training when and then needed, so as to improve the performance of the employees. To implement the new concepts of management, than following the older concepts. To follow the participative style of management. To implement the performance appraisal methodologies, as to facilitate a greater morale in workers by giving opportunity for their growth.

M.P BIRLA Institute Of Management, Bengaluru

Page 53

Rayen steels (p) Ltd

CONCLUSION:
The internship training in the company helped me to know the practicalities. I learnt about
organization as to how it works in the management aspects and the policies and procedures totally it was highly useful training for me in the company. This has added value in my academic learning.

Its gives the knowledge about how to communicate with the employees and with the management. Its also helping me to maintain good relationship with the top level management and it also gives the knowledge about how the management responsibilities flow in the organization. It was one of wonderful experience with the organizational visit. It was a great learning experience working in Rayen steels pvt. Ltd, it helped me improve my knowledge and skill. It enabled me to get a brief knowledge on the various process that organizations work on and the cross functional department mental work carried out in the company.

M.P BIRLA Institute Of Management, Bengaluru

Page 54

Rayen steels (p) Ltd

ANNEXURE

M.P BIRLA Institute Of Management, Bengaluru

Page 55

Rayen steels (p) Ltd

BIBLIOGRAPHY:

REFERENCE BOOKS : 1. F. M-- PRASANNA CHANDRA (7th edition) I.M.PANDAY (9th edition 2004) 2. H. R.M-. DR. K. ASWATHAPPA(5th edition 2008) 3. MARKETING MANAGEMENT PHILIP KOTLER,(12th edition 2007)

WEBLIOGRAPHY:
www.steelscenario.com (Date and Time of access-29 july 1:30) www.spongeironindialtd.com (Date and Time of access- 10 Aug 10:00)

M.P BIRLA Institute Of Management, Bengaluru

Page 56

You might also like