PROJECT ON SUMMER

INTERNSHIP AT JINDAL
STAINLESS LIMITED-HISAR

-by SIDHARTH GARG

-TRAINING PERIOD OF 45 DAYS
 STAINLESS STEEL
 INTRODUCTION

 Stainless Steel does not need any introduction, as we all are regular users of
stainless steel in our homes, offices, industries, workplaces & almost
everywhere. It can be found each and every where in different forms. For
example in the form of wrist watch’s case or its strap, pen’s clip, refill head or
nib, the coins even the trousers are held in its position by stainless hooks.

 Stainless steel being an industrial product is a generic term for a group of

corrosion resistant steels containing a minimum of 10.5% of chromium,
varying additions of Ni, Mo, Ti, Niobium & other elements may be present.
Or, in short stainless steel are iron-base alloys containing chromium as the
main alloying element.
 Stainless steel is compatible & friendly with almost all
types of environment. Stainless steel have proved their
economic value in practically all types of industries and
house hold applications. On the one hand it’s initial cost
is higher, but overall life cycle cost of stainless steel
products have been found much lower as compared to
other engineering materials. The long life, attractive
surface appeal, easy in maintenance & several other
favorable characteristics are making the production &
application growth of stainless steel very continuous and
are being used widely.
 Jindal Stainless Limited Hisar, a name synonymous with
unparalleled quality and decades old industry
reputation, is Indias only fully integrated stainless steel
plant that manufacturers world class stainless steel flat
products across all grades. Equipped with its own
advance R&D facilities and an exclusive complex for
razor & surgical blades and a coin blanking line, the
plant has the largest capacity of Stainless Steel in India
in private sector.The state-of-art Melt & Casting Shops
have an installed capacity of 800,000 tons per annum.
 A part of the O P Jindal group, Jindal Stainless Limited
(formerly JSL Stainless Ltd.) is India's largest and the only
fully integrated Stainless Steel manufacturer. Jindal
Stainless Limited has grown from an indigenous single-unit
Stainless Steel plant in Hisar, Haryana, to the present
multi-location and multi-product conglomerate.
 Jindal Stainless Limited is a globally recognized producer of
stainless steel flat products in Austenitic, Ferritic,
Martensitic and Duplex grades. The product range
includes Ferro Alloys, Stainless Steel Slabs & Blooms, Hot
Rolled Coils, Plates, Cold Rolled Coils and specialty products
such as razor blade steel, precision strips and coin blanks.
 Jindal Stainless Limited has initiated strategic growth
 plans in both domestic and international markets and has
made investments towards capacity expansions through
forward and backward integration.
 Driven by its focus on sustained growth & value addition
in its products and services, Jindal Stainless Limited has
led the way with continuous innovation. In addition to its
Stainless Steel manufacturing facility, Jindal Stainless
Limited has established an extensive distribution network
through its service centers and warehouses. With its well-
established distribution network in both Domestic and an
overseas market, Jindal Stainless Limited is well equipped
to serve its customers from its Stainless Steel
manufacturing facilities at Hisar and Odisha.
 Jindal Stainless’s Stainless Steel capacity after full
expansion at Odisha will be about 2.5million tons per
annum.
MILESTONES
1970-2000

 Incorporated in 1970 as Jindal Strips at Hisar, Haryana,

India
 Started manufacturing of stainless steel in 1978
 Provided seed capital for other ventures of the group
 Enhanced stainless steel capacity to 200,000 tons
2001-2005
 Stainless Steel (SS) operations separated from group
investments

 SS capacity ramped up to 400,000 tons.

 Acquired cold rolling facilities in Indonesia.

 Started investments in phases in Orissa.

 Started Service Centre in India.

 2006-2010
 SS capacity ramp up at Hisar plant to 720,000 tons.

 Commissioned phase-I at Odisha- 250,000 tons ferro

alloys & 250MW thermal power plant.

 Started investment on Phase-II at Odisha - additional

800,000 tons stainless steel capacity.

 Set up service centre in Spain under a JV.

 2011
 Commissioning of phase-II – additional 800,000 tons
stainless steel facilities.
 Overall Stainless Steel melting capacity now at
1,520,000 tons (Hisar 720,000 tons & Odisha 800,000
tons).
COLD ROLLING DIVISION
STAINLESS STEEL PRODUCT
FORMS

 PLATE
These are hot rolled /forged product with
minimum thickness of 4.76 mm and width
more than 254 mm.
SHEET
 Stainless steels are flat rolled product in coil form or
sheared length. It may be hot rolled or cold rolled. As
per the conventional specification sheets are produced in
thickness range of 0.13 to 4.76 mm and width more
than 6.10 mm.
 Production of hot rolled sheets involves rolling of
conditioned slabs in hot strip mills for rolling of slabs
reheating furnaces are used to raise the slab
temperature to hot wording range. Red-hot slabs are
than rolled to finished size in modern strip mills in hot
rolled coil form, generally in thickness of 1.5 mm and
above.
 Hot rolled coils are annealed, pickled and cold reduced to
lower thickness in 4-hi or 20-hi cold rolling mills. Cold
sheets are annealed, pickled and sometimes temper
rolled also, to improve its metallurgical, physical and
mechanical properties.
STRIP

 Strip is also hot or cold rolled flat product like

sheet, the only difference in sheet and strip is
that the width of strip is less than 6.10 mm.
FOIL
 Foil is an ultra thin cold rolled product in coil form few
microns to 0.13 mm thickness and less than 6.10 mm
width. Thickness tolerances of the foils are very
important factor.
 Foils are produced in slit widths in various finishes for
wide range of applications.
BAR
 It is stainless long product produced by hot or cold
finishing operation. These are produced in various cross
sections and finishes in straight lengths. Hot finished
bars are produced in various shapes and sizes lime
structural shapes, angles, channels, and tees, round etc,
these are commonly produced by hot rolling forging or
extraction process. Hot worked products undergo
annealing, heat treatment, pickling conditioning and
straightening operations.
WIRE ROD
 It is the smallest round section of stainless steel, which
can be produced by hot rolling process in a wire rod mill.
The wire rod with minimum diameter of 5.5mm can be
rolled from stainless steel billets. Almost all wire rods are
cold drawn into wires of different diameter and shape to
improve physical dimensional surface smoothness and
mechanical properties.
 Wire cold drawing of annealed pickled hot rolled wire
rods produces Stainless Steel Wires. Round wires are
generally produced in diameter range of 0.08mm to
15.9mm. Production of wires involves wire drawing of
hot rolled wire rod through series of tapered hole die.
Finished wires can be produce in various finishes and
tempers. In addition to circular cross section, wires are
produced in various shapes like oval, flat etc. depending
upon the end use requirements. Wires are available in
several tempers like annealed, soft, and intermediate or
spring temper for various applications.
PIPES AND TUBES

 Pipes and tubes are tubular hollow products in seamless

or welded forms. Processing of round billets, rolling or
extrusion process produces seamless tubular products.
These are having no joints, therefore, have uniform
strength across its cross section. After hot processing
various heat treatment, rescaling and finishing
operations are performed.
Global Position of JSL
 Stainless steel consumption globally has grown by 5.2%
annually in the last 10 years despite 2-3 years of overall
consolidation in steel and stainless steel industry.

 Last 10 years growth has primarily been driven by

strong growth in Asia especially China and India having
registered growth of 21% and 12% respectively.

 China was the biggest stainless importer and consumer

in 2011 with apparent consumption of 6.2 MT. and an
import of around 3.5 MT.
 Stainless steel industry in India is witnessing a radical
change in consumption pattern with demand picking up in
new segments like railways, architecture building,
construction, automobile segment, and other applications
like fast food chains, shopping malls, and commercial
complexes.

 Any history dealing with the Steel Industry of India of

modern times has to start with the vision of Jamshedji
Tata who put India on the world map of Steel earlier than
any other country in the whole of Asia.


 In the Steel industry there are three major companies in
India –

1. Tata Iron and Steel Company

2. Steel Authority of India Limited
3. Bhushan Steel and Stainless
PRODUCT MANUFACTURED AT
HISAR PLANT
 Slabs:

 Blooms
 Hot Rolled Products
As cast/ground of slabs, they are first heated and socked
in reheating furnace, rolled in roughing mill to
intermediate thickness and to the final thickness in the
steckel mill.

(known as black coil)

 Hrap Coils:
Hot Rolled Annealed pickled coils are produced after
continuous annealing and pickling.

 Hrap Plates: -

Plates are finished after annealing & pickling or by

cutting HRAP coils to desired lengths.
 Cold Rolled Products:
Cold rolled coils and sheets are produced after being
processed in 20 Hi-mill, continuous anneal & pickle line,
slitting line and cut to length lines.
 Blade Steel
The company is exclusive producer of stainless steel
Stainless for making Razor Blades and Surgical Blades in
India. The plant has a capacity to produce 10,000 metric
tones per year.
 What Is A Letter of Credit?

•A documentary credit, or letter of credit is

an undertaking issued by a bank for the
account of the buyer (applicant), to pay
the seller (beneficiary) provided the terms
and conditions of the documentary credit
are complied with.
• A documentary credit, or L/C, usually
satisfies the seller’s desire for cash
payment and the buyer’s desire for credit.
MODES OF INTERNATIONAL TRANSACTION
 SOLUTION
TO RISK
OF
BUYER & SELLER

LETTER OF CREDIT
Defination of letter of credit
A binding document that a buyer can request
from his bank in order to guarantee that
the payment for goods will be transferred to
the seller according to the underline letter of
credit.
Letter of Credit – Related Terms:

 Applicant- the buyer in a transactions.

 Beneficiary - the seller or ultimate the
recipient of the fund.
 Issuing bank - the bank that promise to pay.
 Advising bank/negotiating bank – help the
beneficiary use the letter of credit.
Types of Letter of Credit:
 Existance
 Revocable v/s Irrevocable L/C
 Tenor
 Sight v/s Usance L/C
 For Seller enhanced security
 Confirmed L/C v/s Unconfirmed L/C
 Stand by L/C
 Regulations Governing L/C’s

• Documentary credits are governed by the

International Chamber of Commerce’s Uniform
Customs and Practice for Documentary Credits
(UPC 500).
• There are two basic types of Documentary
Credits: Irrevocable and Revocable.
• An Irrevocable L/C cannot be cancelled or
modified without the express consent of the
issuing bank, confirming bank and beneficiary.
• A Revocable L/C can be cancelled or amended
without the beneficiary’s consent or prior
knowledge.
Advantages of Letter of Credit
 Provision of finance for Seller
 Risk covered
 Business Expansion/New Business
Opportunities
 Disadvantages of Letter of Credit
 It deal with the documents and not with the goods
 This payment method is costlier than other
methods.
 The Beneficiary’s documents must comply with the
terms and conditions.
 No availability of the confidential data.
How Letter Of Credit Works ?
Buyer Request Issuing Bank

Advise
Trans

Advising Bank/
Seller Copy
Negotiating Bank
Buyer Document Issuing Bank

Document
Goods

Document Negotiating
Seller
Bank
Buyer Accept Issuing Bank

Paid
Release Negotiating
Seller
Bank
 Process Flow Index

1. Buyer submits Purchase Order or Contract to Seller.

2. Buyer places application for Letter of Credit with buyer’s bank.
3. Buyer’s bank sends confirmation of Letter of Credit to Seller’s confirming bank.
4. Confirming bank sends copy of Letter of Credit to Seller.
5. Seller sends order confirmation to Buyer.
6. Seller sends order to freight forwarder.
7. Freight forwarder exports order to Buyer. Freight forwarder sends export documents to
Seller
8. Seller presents Letter of Credit and export documentation to confirming bank for
settlement.
9. Confirming bank confirms authenticity of Letter of Credit and export documents, pays
Seller per terms of the Letter of Credit.
10. Confirming bank forwards export documents to Buyer’s Bank.
11. Buyer’s bank presents copies of export documents to Buyer;
12. Buyer pays bank under terms of the Letter of Credit; Buyer’s bank releases original
export documents to Buyer.
13. Buyer presents original export documents to local customs authorities.
14. Customs authorities verify authenticity of documents and release goods to Buyer.
JSL’s LETTER OF CREDIT
-FORMAT
 FORMAT OF ILC

 Name and
address of Beneficiary: JINDAL STAINLESS LIMITED
P.B. Box No.6, O.P. Jindal Marg,
HISAR (HARYANA)

 2. L/C Amount : Basic + Taxes + duty +Freight+

Tolerance + Interest
 3. Quantity : As per purchase order & order
acceptance
 4.Description of goods : Cold Rolled/Hot Rolled

Sheet/Plates/Strips/Coils

 5. Unit Price : As per purchase order & order

acceptance.

 6. Freight : To be billed

 7. Usance Period : 30 days/60 days – From

the date of Invoice
 8. Negotiating Bank : Any bank in India

 9. Last date of shipment : Min. 6 Week from

date of LC Opening

 10. Last date of negotiation : With in the

validity of LC Expiry

 11. Place of Expiry : Place to be mentioned.

 12. Part shipment : Allowed

 13. Trans shipment : Allowed/ not allowed.

 14. Shipment from : JSL Hisar/JSSL Gurgaon

 15. Shipment to : Buyer’s place.

 16. Insurance : Applicant A/c.

 17. Documents required :1. Signed Excise Invoice

(Original for Buyer)
2. Lorry Receipt
 18. Bank Charges : Openers Bank Charges to
Opener and Beneficiary bank charges to beneficiary
account.

 19. Reimbursement : Through RTGS Only or At the

local branch of L/c issuing
Bank at HISAR

 20. Interest : Interest @12.50% P.A. is payable

by Opener (This may be change from time to
time depending up on Bank base rate)
 Other Points to be checked:-

 L/C to be advised to the beneficiary through State Bank

of India, Small and Medium Enterprises Branch, JSL
Complex ,O.P. Jindal Marg Hisar (Haryana) 125005,
Ph.01662-220617, 221208 Fax no.221752

 Tolerance: +/- 10% in total quantity and value allowed

in the L/C and +/-10% to individual size/quantity.

 The credit free period should be clearly mentioned.

 L/C signatories’ codes are mentioned by the L/C issuing

branch.
 Proper clause has been incorporated when the material
will be dispatched to sister concerns.

 All conditions should be from the date of dispatch.

 In the event of Negotiating Bank Not being paid on due

date, overdue (OD) interest @16% shall be paid by
applicant/appliciant bank.
COLD ROLLING DIVISION
Cold rolling division-Marketing office
ANNEALED & PICKELED SS COILS
Special thanks to-

 Mr. Pankaj Aggarwal

(DGM Marketing-Hisar Plant)
 Mr. Shailesh Arya
(Chief Marketing Officer)
 Mr. S.K Jain
(Plant Head-Hisar)