Jindal Report

A COMPANY PROJECT REPORT ON PRODUCTION PROCESS, PRODUCTS & BUSINESS PROCESS

A Vision transcending

Steel and Power

JINDAL STEEL & POWER LIMITED ISO 9002 and 14001 Certified Company

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A PROJECT REPORT ON “PRODUCTION PROCESS, PRODUCTS & BUSINESS PROCESS” SUBMITTED FOR THE PARTIAL FULFILLMENT FOR AWARD OF MASTER OF BUSINESS ADMINISTRATION CHHATTISGARH CHHATTISGARH SWAMI VIVEKANANDA VIVEKANANDA TECHNICAL UNIVERSITY BHILAI

SUBMITTED BY:SATISH KUMAR TIWARI M.B.A. 3rd SEMESTER  SESSION 08-09

APPROVED BY: -

GUIDED BY:-

Dr. SUMITA DAVE

UJJWAL SINHA

H.O.D.

DGM, MARKETING,JSPL

SHRI SHANKARACHARYA INSTITUTE OF MANAGEMENT & TECHNOLOGY, TECHNOLOGY, JUNWANI BHILAI(C.G.)

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DECLARATION I, Satish Kumar Tiwari a student of  MBA 3rd Semester at Shri Shanka Shankarach rachary arya a Instit Institute ute of Manage Managemen mentt and Tec Techno hnolog logy y here he reby by de decl clar aree th that at th this is re rese sear arch ch re repo port rt on “PRODUCTION PROCESS, PRODUCTS & BUSINESS PROCESS .” is the record of 

my original work under the guidance of Ujjwal wal Sinha (DGM,Marketing,JSPL). This report has never been submitted

to anywhere else for award of any degree or diploma

Place: Raigarh Date:

Satish KumarTiwari M.B.A. 3rd Semester

SHRI SHANKARACHARYA INSTITUTE OF MANAGEMENT MANAGEMENT & TECHNOLOGY, JUNWANI BHILAI(C.G.)

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CERTIFICATE

This is to certify that the project “PRODUCTION PROCESS, PRODUCTS

&

BUSINESS

PROCESS.”

submitted

to

Shri

Shankaracharya Institute of Management & Technology, Bhilai in partial fulfillment of the requirement for the award of the degree “Master of Business Administration (MBA)” is a bona fide work carried out by Satish Kumar Tiwari, a student of  MBA 3rd Semester, under my supervision and guidance.

Place:-Raigarh Date:-

Mr.Ujjwal Sinha (DGM, Marketing, JSPL)

SHRI SHANKARACHARYA INSTITUTE OF MANAGEMENT & TECHNOLOGY, JUNWANI BHILAI (C.G.)

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PREFACE: Since the last few decades due to fast industrial development & high competitiveness in the market the MARKETING plays a very vital role in the success of an organization. Marketing is one of the live functions of an organization. It is the only function through which a manufacturing organization earns revenue, which leads to the survival & growth of the organization as a whole. It fulfils the needs & wants of the society. The industrial revolution born the germ of a new business system. It introduces new products, new system of manufacture, and new modes of transportation & methods of communication & brought about changes in the physical & economic environment of man. Mass production became the order of the day. The above discussion was the basic thought which made me realize the importance of business process & so I selected the business process as my project study. THIS PROJECT REPORT IS BASED ON SUMMER TRAINING IN THE ORGANIZATION. THIS PROJECT REPORT HAS BEEN PREPARED TO BE SUBMITTED TO “SHRI SHANKRACHAYA INSTITUTE OF MANAGEMENT TECHNOLOGY” BHILAI IN THE PARTIAL FULFILLMENT FOR MBA.

Moreover I am very much obliged to Mr.UJJWAL SINHA (DGM Marketing), Mr. MANMATH DASH and the whole MARKETING, ROLLING, FINANCE & LOGISTICS department who encouraged me towards my project & gave me practical knowledge.

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ACKNOWLEDGEMENT

I owe my sincere gratitude to the Marketing Department of  JINDAL STEEL & POWER LTD.(Raigarh), & Shri shankaracharya Institute of Management

& Technology, (Bhilai) for providing me an opportunity to do my project study. The project report entitled “PRODUCTION PROCESS,PRODUCTS & BUSINESS PROCESS” of  “JINDAL STEEL & POWER LTD.(Raigarh).” It is an outcome of constant encouragement & invaluable guidance of my project guide “Mr.Manmath Dash ” marketing. He made me realize the complexities of the subject, the practical & theoretical aspects. Hence I pay my sincere gratitude to him, who inspired me to undertake this work & guided me continuously. Without his valuable guidance, this work could not have been completed. Special thanks to Mr.C.D.Mathew GM (P&OD) & Mr.Ujjwal Sinha DGM (Marketing), for their valuable support whenever needed. I am also thankful to all other department & staff member of  JINDAL STEEL & POWER LTD. (Raigarh), for their co-operation directly or indirectly. Finally I am grateful to the Marketing, Logistics & Rolling Department, which had prepared a proper schedule to give a successful shape to the company project report.

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CONTENTS 1

Objectives of Study

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Introduction

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About industry

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Customers of Jindal

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Company Profile

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Product Profile

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4 Ps of organization

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Process flow

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Production Process

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Business Process

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Export in Jindal

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Customer Satisfaction

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Logistics

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Findings

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Conclusion

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Suggestions

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Bibliography

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OBJECTIVE OF THE STUDY

1).To study the production process, product and business process of JSPL.

2). To know more about JSPL.

3). To analyze the customer satisfaction.

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Shri O.P.JINDAL

 A Tribute

Shri Om Prakash Jindal more popularly known as O.P. Jindal was born on August 7, 1930 in the village Nalwa of district Hisar in Haryana. He was the Chairman of the Jindal Organization. His life's mission was to help others especially the common man in every possible way. The list of his philanthropic activities is rather long. As the Chairman of N.C. Jindal Charitable Trust, he set up many schools and hospitals. His selfless social services, unassuming generosity and philanthropic contributions to individuals and organizations has ensured that he is revered by all. For being a successful industry visionary he is a role model for others. As a Member of Parliament, he proved himself a mature, seasoned and an honest parliamentarian who fulfilled his political duties for the welfare of the nation constantly. The journey of life of Sh. Jindal from a farmer's son to a successful industrialist, a sincere social worker and a successful politician is a source of great inspiration for many.

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REASONS FOR SLECTION CORE (Steel) SECTOR  Global steel demand is rising on the back of accelerated infrastructure activity in China, CIS and India, housing boom in USA, and white goods resurgence in Europe. During the recent recessionary phase, the industry has consolidated in terms of ownership as well as mothballing of inefficient capacities. Steel prices continue firming up. For the first time in last 20 years, there is demand growth all over the world for steel. In US, the demand is led by the booming housing industry. Additionally the auto industry is showing signs of recovery as auto sales hit their strongest levels for the year in July even as US posted a 2.4% GDP growth. In Europe, there is demand from a buoyant housing and white goods industry according to industry sources. In India, China and other Asian countries the demand is led by emphatic investment activities in infrastructure. Russia and other CIS nations are also witnessing strong internal demand. Iraq reconstruction work is expected to fuel further demand for steel over  the next three years. China is consuming steel like never before for its infrastructure with investments such as Three Gorges project on Yangtze as well as part of its build up to the Beijing Olympics in 2008 and the Shanghai Expo in 2010. The demand supply gap is expected to increase and this will drive steel prices northwards, even as the global steel industry is not prepared for this demand onslaught.

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Major Indian Steel Players Tata Iron and Steel Company Steel Authority of India Ltd. Jindal Steel and Power Ltd. Jindal Iron and Steel Ltd JSW Ltd Jindal Stainless Ltd. Essar Steel Ltd Ispat Industries Ltd.

SWOT analysis of Steel sector in India Strengths India has rich mineral resources. It has abundance of iron ore, coal and many other raw materials required for iron and steel making. It has fourth largest ironore reserves (10.3 billion) after Russia, Brazil and Australia. Therefore many raw materials are available in comparatively lower cost. It has the third largest pool of technical manpower next to US & USSR, capable of understanding and assimilating new technologies. Considering quality of workforce, Indian steel industry has low unit labour cost, commensurate with skill. This gets reflected in the lower production cost of steel in India compared to many advanced countries. With such strengths of resources, along with vast domestic untapped market, Indian steel industries have the potential to face the challenges.

Weaknesses • •

Endemic Deficiency Systematic Deficiency

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High Cost of Capital Low labour Productivity High Cost of Basic Inputs and Outputs

o o o

• • • •

Poor Quality of infrastructure like Roads and Ports Lack of Expenditure in R&D Delay in absorption of technology by the existing units Low quality of steel and steel products L ack of facilities to produce various shapes and qualities of finished steel on demand. L imited access of domestic producers to good quality of iron ore, which are normally earmarked for exports. High level Taxation L ack of interest in international competitiveness on determinants like product design, product quality, on-time delivery, post sales service etc. •

•

•

•

Opportunities •

Unexplored rural market The Indian rural sector remains fairly unexposed to their multi-faceted used of  steel. The rural market was identified as a potential area in way back in the year  1976. The usage of steel in housing fencing, structures and other possible application where steel can be use as a substitute can increase per capita consumption of steel.

•

Other sectors Excellent potential exists to enhance the consumption of steel in other sectors like automobiles, packaging, engineering industries, irrigation and water supply in India.

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Export market penetration It is estimated that world steel consumption will double in next 25 years. Quality improved Indian steel combined with low cost advantages will definitely help in substantial gain in export market.

Threats

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Slow industry growth The linkage between economic growth of a country and the growth of its steel industry is strong. The Indian steel is no exception. The growth of domestic steel industries between 1970-1990 is totally equal with the growth of the economy, which was totally sluggish. This enhanced rivalry among existing firms.

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Threat of substitute Plastic and composites pose a threat to Indian steel in one its biggest marketsautomotive manufacturer. The other vibrant threat for steel is aluminum.

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Technological change Technological changes often force the industry structure to change. For  developing country like India where capital itself is costly, technological obsolescence is a major threat.

•

Price sensitivity and Demand Volatility The demand for the steel is a derived demand and the purchase quantity depends upon the end-use requirements. The traders tend to exhibit price sensitivity and buy when there is discount available. This volatility of demand often affects the integrated steel manufactures because their inability to tune the production in time with the market demands fluctuation.

Other threats Ever decreasing import duty on steel. Dumping of steel by developed countries. o High quality products from developed countries available for import at o very competitive price. o Non-availability of capital from financial institution for iron and steel sector. o

Selecting Jindal as a company of our choice

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In the world of business, the Jindal Organization is a celebrity. Ranked sixth amongst the top Indian Business Houses in terms of assets, the Group today is a US$8 billion conglomerate. Jindal Organization, set up in 1952 by the steel visionary Mr. O.P. Jindal, has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multi-billion, multi-locational and multiproduct steel conglomerate. The organization is still expanding, integrating, amalgamating and growing. New directions, new objectives... but the Jindal motto remains the same"We are the Future of Steel ". The group has been technology-driven and has a broad product portfolio. Yet, the focus at Jindal has always been steel. From mining of iron-ore to the manufacturing of value added steel products, Jindal has a preeminent position in the flat steel segment in India and is on its way to be a major  global player, with its overseas manufacturing facilities and strategic manufacturing and marketing alliances with other world leaders. Jindal Organization aims to be a global player. In pursuance of its objectives, it is committed to maintain world-class quality standards, efficient delivery schedules, competitive price and excellent after sales service.

Jindal Group of Companies Jindal Steel and Power Ltd. Jindal Iron and Steel Ltd JSW Ltd. Jindal SAW Ltd. Jindal Stainless Ltd.

Jindal Steel & Power at a glance Jindal Strips was restructured and the Raigarh and Raipur divisions of the company were hived off to give birth to Jindal Steel & Power Limited. From being the Asia's largest and the world's largest coal based Sponge Iron Plant with a capacity of 5,00,000 MTPA, it has now been expanded to 6,50,000 MTPA by addition of a 10th Kiln to become the world's largest coal based Sponge Iron Plant. The second core strength of the company is Power. From the captive power  generation capacity of 28 MW in 1995-96, the present generating capacity is 340

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MW. It uses hot gases (generated during manufacture of sponge iron), coal washery rejects, and char and coal fines for generation of power and this make the operations highly economical and environment friendly. The company also has the facility to manufacture Mild Steel Slabs and Ferro Chrome. The company has gone in for backward integration by acquiring Iron Ore Mines at Tensa, Orissa and Coal Mines at Gare Coal fields, Raigarh, Chattisgarh. During February 2002 at Raigarh the 120 Mtr Rail & Universal Beam Mill project was commenced with a production capacity of 550,000 MT per annum of rails, H beams, columns and sheet piles. The total cost of the project was Rs.400 crores. In august, 2002 the Coal Washery Plant with annual capacity of 2.5 million was commissioned. The company has started the 55 MW power project at Raigarh in September 2002. The estimated outlay for  the project is Rs.207 crores and the project is expected to commission by September 2004. After completion of the project the total enhanced capacity will be 300 MW. The company is proposed to expand the capacity of Sponge Iron by setting up additional four kilns each of 1.65 lac MT capacity at Raigarh. The estimated outlay for the project will be Rs.200 crores and the project work is being taken up in phased manner. The Phase I and Phase II will be completed by March 2005 and September,2005 respectively. Since the Sponge Iron Plant will generate flue gases, the company proposes to utilize the flue gases by way of setting up 2 power plants of 25 MW each at a cost of Rs.150 crores. After installation the enhanced power generation capacity will be 50 MW. Out of the 2 power plants one 25 MW will be set up by March 2005 and another will be by September 2005. The Plate Mill - 1 Million tones capacity, has been commissioned in March 2007.

Vision

To be a company of globally repute in steel sector. Mission To achieve growth in business with global competitive edge providing satisfaction to the customers, employees, shareholders and community at large.

Location:

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ADDRESS: Corporate Office: Jindal Centre 12 Bhikaiji Cama Place  New Delhi 110 066. INDIA Tel: +91 011 26188345-60 Fax: +91 011 26161271 Email: [email protected]

Registered Office: Delhi Road Hisar 125 005. Haryana INDIA Tel: +91 01662 220471- 75, 222471- 84 Fax: +91 01662 220476

Works: Raigarh:

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Kharsia Road Raigarh 496 001 Chhattisgarh. INDIA Tel: +91 07762 227001-10 Fax: +91 07762 227021-22, 227030 E-mail: [email protected]

Raipur: 13 K. M. Stone G.E. Road, Mandir Hasaud Raipur 492 101 Chhattisgarh. INDIA Tel: +91 0771 2471205-07 Fax: +91 0771 2471214 E-mail: [email protected]

Mines: Tensa: TRB Iron Ore Mines P.O. Tensa 770 042 Distt. Sundergarh Orissa. INDIA Tel: +91 06625 236023/24

Domestic Customers of Jindal Steel & Power Ltd. ABB AFCONS Alfa Laval Alstom Project Ltd. Avery India Ltd. Bajaj Hindustan Ltd. BALCO Balrampur Chini Mills Ltd Bharat Heavy Electricals Ltd. Bhushan Ltd

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Bhushan steel & strips Ltd. BHP Infrustructure Ldt. Birla Copper Ltd. CSEB DCM shriram Consolidated Ltd. DSCL Shugar Ltd. Dwarikesh ShugarLLtd. ESSAE Digitronics Ltd. Essar Construction Ltd. Essar Steel Ltd. Ganpati Steel Ltd. GEMSCAB.LTD. Gilvert Ispat Ltd. Gujrat Adani Ports Ltd. Gujrat Ambuja Cement Ltd. Gujrat Sidhee Cement Gujrat Urga Vikas Nigam Haryana steel Alloy & Ltd. Hero Honda Motors Ltd. HINDALCO HLL Hundai Motors India ltd. Ispat Industries ltd.

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Jindal Vijaynagar Steel ltd. JK industries Ltd. JMC Projects India Ltd. JMD Oil P Ltd. Macabre Beekay Pvt Ltd Maharastra Seamless ltd. MSEB Maruti Udyog Ltd. Mawana sugar ltd. Mcnally Bharat ltd. National Paraxide Ltd. Nagarjuna Construction Ltd. Nevyeli Lignite Corporation Paharpur Colling Towe Eas Cement Ltd Rathi Udyog Ltd. Regency International Ltd. Reliuance Energy Ltd. RSB Projects Ltd. Scaw Industries Ltd. Shree Alloys Ltd. Shriram Vinyl & Chemicals Ltd. Simbhaoli Sugar Mills Ltd.

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Simplex Concrete Pile Ltd. Tata Sponge Iron Ltd. Technip KT India Ltd Thermax Ltd. Thyssen Krupp Ultratech Cement Ltd. Usha Martin Ltd. Utkarsha Galva Ltd. Uttam Sugar Ltd. Vardhaman Yarns Ltd. Vendata Alumina Ltd. Videocon Industries Visa Steel Ltd. VRC Construction Indian Oil Corporation Haryana State Electricity Board Bharat Aluminium Company Indian Railways Indian Aluminium Company Ltd HEG Ltd Reliance Industries Ltd National Thermal Power Corporation Ltd. BSES Ltd

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Larsen & Toubro Ltd TATA Steel Aarati Steel TATA Projects Ltd Saw Pipes Ltd National Hydroelectric Power Corporation Ltd Kandla Port Trust Hindustan Zinc Ltd Konkan Railways Omaxe Constructions Ltd Hindustan Lever Ltd •

Jai Prakash Industries Ltd

Product Mix of Jindal Steel & Power Ltd

Raw material o o o

Sponge iron Pig iron Ferro chrome

Semi- finished Products o o o o o

Bloom Slabs Rounds Billets Beam blank

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Finished Products o o o o

Beams Columns Channels Rails

By Products o o o o o o o o o o

Acration Fly ash Coal tar  Iron ore fines Granulated Slag Flue dust Mill skull Coal & Coke fines Pond fines Ash cha

COMPANY PROFILE:

"The USD 8 Billion Jindal Group has developed into a multi-faceted organization and is one of the largest steel producers in India with 12 plants in India and 2 in USA." O. P. JINDAL.

In the world of business, the Jindal Organization is a celebrity. The Group today is a US $8 billion conglomerate. Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal,

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has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multi-billion, multi-location and multi-product steel conglomerate. The organization is still expanding, integrating, amalgamating and growing. New directions, new objectives... but the Jindal motto remains the same - "We are

the Future of Steel

".

The group has been technology-driven and has a broad product portfolio. Yet, the focus at Jindal has always been steel. From mining of iron-ore to the manufacturing of value added steel products, Jindal has a pre-eminent position in the flat steel segment in India and is on its way to be a major global player, with its overseas manufacturing facilities and strategic manufacturing and marketing alliances with other world leaders. Jindal Organization aims to be a global player. In pursuance of its objectives, it is committed to maintain world-class quality standards, efficient delivery schedules, competitive price and excellent after sales service.

O. P. JINDAL

In today’s era of fierce global competition and rapid technological advances, an organization has to move twice as fast just to keep pace with the changing world and four  times as fast if it has to speed ahead. And that is exactly what we, at Jindal Steel & Power Limited (JSPL), are in the process of achieving. At Raigarh, we have the world’s largest coal-based plant sponge iron manufacturing capability. JSPL is the only sponge iron producer in the country with its own raw material source and power generation, making it one of the most cost effective producers of sponge iron in the country. A state of the art Rail and Universal Beam Rolling Mill has been set up, to manufacture the world longest rails, 120m long, for the Indian Railways and global markets. Also, the mill manufactures H-beams & Columns in larger sizes for the infrastructure and construction sectors, for the first time in India.

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A further increase in the steel-manufacturing capacity is part of our growth and expansion plans with a new Steel Melt Shop near the Rail Mill on the anvil. Growth is the keyword and by 2004, our steel production will exceed 1 million MTPA, offering a range of steel products that best leverage the strengths of our  facility, quality and technology. JSPL is utilizing waste hot gases and coal washery rejects to generate 150MW power. Another 55MW power plant is under installation. A new company Jindal Power Limited has been set up which is currently working on plans to establish a 1,000 MW plant at Raigarh. At JSPL, we recognize that environmental protection is an integral part of the company's activities. We are an ISO 14001 certified organization, committed to conducting our business safely, ethically and in an environmentally responsible manner that protects the natural resources and the environment in which we live. Our philosophy of moving up the value chain by increasing our portfolio of value added products continues. The unstinted support over the years from our  investors, our clients, business associates and well-wishers, has been a great asset and we hope to continue to have them with us as we grow from strength to strength.Naveen Jindal Executive Vice Chairman & Managing Director

At JSPL, to evolve is to go forth into the world and be the best that we can be. To grow, to progress, thereby achieving heights that hitherto had only been dreamt of. A task that requires great skill and precision. By optimizing operational efficiencies and effecting reduction in costs, we are achieving economies of scale that are increasingly making us the preferred choice with our customers. We continue to modify our organizational structure to accommodate changing business needs, gearing ourselves to meet the global challenges ahead. Pursuing innovative approaches, embracing new production technologies as they fit our specific needs, our focus is to provide our customers with a ‘total solution’, the differentiation being through superior products, services and support.

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JSPL is an integral part of the Jindal Organization, an Indian multinational present worldwide, though its Indian activities predominate. We continue to seek new business opportunities that complement our market strengths, offer growth potential, and leverage our existing assets for future growth so as to maximize value for all our stakeholders. Success with our customers, our employees, our  shareholders and our community is our mainstay. Serving them by building long term relationships and becoming a leader in the global markets.

Projects under Installation: •

•

•

50 MW capacity Power Plant based on fuel gases of coke oven 6 million tonne capacity steel plant in Orissa with an investment of Rs. 13,500 crores 6 million tonne capacity steel plant in Jharkhand with an investment of Rs. 15,000 crores

•

1000 MW O P Jindal Super Thermal Power Plant in Raigarh, with an investment of over Rs.4500 crore, by Jindal Power Limited, subsidiary of  JSPL.

JSPL to produce rails, H-beams, columns and sheet Piles under technical collaboration with NKK Corporation of Japan.

JSPL has entered into a technical collaboration with NKK Corporation, Japan for technology transfer to produce superior quality, world’s longest rails of 120m finished length, along with Parallel Flange Beams, Columns and Sheet Piles for the first time in the country.

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The The agree agreeme ment nt cover covers s ‘kno ‘know-h w-how ow’’ tran transf sfer  er  encomp encompass assing ing steel-m steel-maki aking, ng, seconda secondary ry refini refining ng and continuous casting up to rolling and finishing of long rails and universal beams; deputation of NKK multidisciplinary specialists at the JSPL plant; and training of JSPL personnel at NKK steelworks in Japan. NKK is already supplying rails for high-speed bull bullet et trai trains, ns, ‘Shi ‘Shinka nkans nsen en’’ in Japan Japan.. This This tech techni nica call coll collab abor orat atio ion n shall shall enabl enable e produc producti tion on of long long rails rails requiring requiring far less joints in tracks, ushering a new era in safer rail-travel and making introduction of fast trains in India a reality.

*NKK IS NOW KNOWN AS JFE ENGINEERING CORPORATION , JAPAN

At Raigarh, a tribal district in the state of Chhattisgarh, JSPL JSPL has has alwa always ys take taken n its its rol role as a resp respo onsib nsiblle corpo corpora rate te citi citize zen n very very serio serious usly ly.. Givi Giving ng back back to the the community at large has been an objective from the very beginning. From ongoing programs specially instituted to improve the lot of the underprivileged, we have been quietly trying to make a difference. One of the key priority priority areas has been education, as this is the field field where impact is is the most productive. productive. The 10+2 0+2 Co-e Co-edu duca cattiona ionall Jin Jindal dal Scho School ol with ith an inve invest stme ment nt over over Rs. Rs. 5 crore crore has has been been opera operati tiona onall at Raigarh. The oldest girl's school renovated. 42 villages have been adopted, contributing contributing to the development development of a reg region ion throu hroug gh a more more hol holist istic effo effort rt.. Here, ere, it is community building that takes place: providing sewage

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and sanitation facilities to building and maintaining roads and parks to healthcare and education. Improvement of medical facilities through the setting up of charitable clinics and hospitals is yet another field of endeavor. The ICU unit at the General Hospital at Raigarh was set up. Medical camps, thrice every week are organized which have benefited more than 40,000 people in the district. Our Our scop scope e of socia ociall act activit ivitie ies s ext extends ends beyo beyon nd healthcare and welfare to the cultural and sports arena, too. oo. The The Kam Kamla Nehru ehru Park Park in the the cit city has has bee been developed developed and is being maintained maintained by JSPL. Roads have been built and developed. The initiation of a Social Acco Accoun unta tabi bilility ty syst system em,, the the SA 8000 8000,, is a meas measur ure e towards rds becom coming an increas reasiingly aware and conscie conscienti ntious ous corpora corporate te member member of society society.. We are making all possible efforts to create a clean and healthy environment, giving back in a small measure what we receive from the community.

For the first time in the history of our country, from 26 January 2002, we Indians are allowed to freely fly the National Flag with pride and honour  at our homes, offices and factories on all days of  the year. Before 26 January 2002 we have never  had the right to fly our own flag whether it was during the rule of the various Princely States, the Mauryas, the Mughals or the British. Even after  inde indepe pend nden ence ce,, when when our our coun countr try y beca became me a Repu Republ blic ic,, in whic which h peop people le are sover soverei eign gn and and where everything belongs to its people, we still did not have the right to fly our own National Flag as it was being used like a Government Flag.

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On 23rd January 2004, in a historic Judgment, the Hon'ble Supreme Court has held that the right to fly the National Flag freely on all days of the year, with respect and dignity is a Fundamental Right. As Mr. Naveen Jindal says "Now after a long struggle that we have got this right, we must proudly display the National Flag on all days. The joy and happiness that it will bring is difficult to be explained in words but can indeed be experienced. By displaying of the National Flag by more and more Indians it will revo revolu luti tion oniz ize e the the way way we thin think k abou aboutt our  our  country, making us a happier and a prouder  nation. When a person displays the National Flag he rises above his religious and political affiliations and only shows his love for his country and that he is proud to be an Indian. Indian. As the Tricolor is our greatest national symbol, we must encourage every Indian to own it, respect it, fly it and above all live by its ideals. Jindal Foundation for Performing & Creative Arts invited well-known artist and and cura curato torr Pet Peter Nagy agy to asse assemb mble le a grou group p of arti artist sts s that hat woul would d be commissioned by the Foundation to create original new works on this subject. These works would become the property of the Foundation and kept together as a group, to be expanded in the future, so that the exhibition could tour around India in the years to come. Mr. Nagy, an American who has lived in India since 1992 and has become intimately involved with its contemporary art scene, is known for  championing adventurous artists who work in a wide variety of materials and mediums. For this project, extremely eclectic group of artists were chosen to present the widest possible number of interpretations on the theme. Painters and sculptors as well as photographers and installation artists were invited to express themselves candidly and honestly, responding to the theme in whatever manner they wished. The results were diverse, to say the least. Many of the works are, of course, celebratory and joyful while others are critical, poignant or even depressing. In the wide range of both types of works and emotions conveyed, the exhibition is witness to the broad diversity of peoples and viewpoints that makes up India today, a true testament to the world's largest functioning democracy. Among the artists who created works for Tiranga are the senior painters Sudhir Patwardhan (of Mumbai), Gulam Mohammad Sheikh and Nilima Sheikh (of  Baroda); Baroda); the painte painters rs Rekha Rekha Rodwitt Rodwittiya iya,, Surendre Surendren n Nair, Nair, Shibu Shibu Natesan Natesan and Nataraj Sharma (all of Baroda) and Jitish Kallat (of Mumbai) and Manisha Parekh (of New Delhi), all of whom have become among the most celebrated artists of  their generation in India today. In addition, addition, strikingly strikingly original sculptures (often amusing amusing and sometimes sometimes shocking) have been created for the exhibition by Vivan Sundaram, Bharti Kher 

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and Subodh Gupta (all of New Delhi) and Reena Saini Kallat (of Mumbai). Photographs documenting the Tiranga in a wide number of uses and settings have also been included, these by some of the biggest names in the field today: Ragu Rai, Dayanita Singh, Samar Jodha and Ram Rahman. In addition, a selection of photographs culled from the National Archives in New Delhi shows the development of the design for the Tiranga and important scenes from the struggle for Independence with many of the founding fathers of the Nation. As part of the opening festivities, an interactive art event conceived by Jitish Kallat invites the public to create their own on-the-spot works to become part of the project. An exhibition on the National- flag "Tiranga- Rights and Responsibilities" is organized by Jindal Foundation for Performing & Creative Arts. The exhibition is a move towards bringing awareness among the citizens of the country to increasingly fly the National Flag and be inspired by it. The exhibition is on at the Jehangir Art Gallery in Mumbai from 10th July- 15th July 2004. The works have already been displayed at India Habitat Centre, New Delhi, on 14th August 2003 -19th August 2003 and Jaipur Virasat Festival, Jaipur  from 07th - 21st January 2004 and soon will move to Victoria Memorial Hall, Kolkata.

At JSPL, the challenge is to make and process steel without adversely impacting the environment. From complying with the requirements of the law to adopting environmentally friendly, clean technologies, we seek to actively promote the cause of the environment. The latest pollution control systems have been installed in our operations. The planning and maintenance of green belts in and around the various facilities are also part of a conscious strategy to control pollution and conserve natural resources. At JSPL, environment protection is an integral part of our operations. We are an ISO 14001 certified Company, committed to conducting our business safely, ethically and in a responsible manner that protects the natural resources and the environment. Some of our major initiatives include •

State-of-the-art Fume Extraction System for dust emission control at the SMS

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• • • • •

Bag filters for dust control at source Electrostatic precipitators to control fly ash emission from the power plant Ventury scrubber in lime kilns for flue gas control 100% effluent recycling to ensure zero water pollution Sewage treatment plant for domestic waste Reuse of solid waste and waste heat as power plant fuel Use of fly ash for brick manufacture •

•

Apart from the above, a green belt has been developed and the concept of green productivity for  sustainable development is being implemented. Tree plantation, which was started in 1991, is an on-going program and over 190,000 saplings have been planted with over 72% survival. Currently over 80,000 saplings are being planted every year, making the area totally green and enriching the ecology of the region. Our commitment goes beyond the integration of  sound environmental practices into our business decisions and activities and is consistent with our  vision to be a premier steel and power conglomerate. We do not just believe in being environment-friendly in terms of post-process measures but also ensure that all the resources available are used in the most optimal manner with minimum wastage. This not only means being an environmentally responsible corporate citizen but also makes eminent business sense, in the most comprehensive and broadest sense of the term. We see the conservation of the environment as in complete synergy with our business ambitions.

TENSA IRON ORE MINES The captive iron ore mine, called TRB (Tantra, Raikela, Bandhal) started in the year 1990 is situated in the picturesque Tensa valley in district Sundergarh, Orissa. The area is very beautiful with thick jungles and greenery all-round. The total reserves are estimated to be about 10 million MT, out of which about 4 million MT have been extracted. The mine is currently producing about 0.6 million MT of sponge grade ore and has been developed with

30

the latest, fully mechanized techniques. It meets about 60% requirement of Iron ore for the sponge iron plant at Raigarh and the cost of production of Iron ore from the mine is almost half the price that is paid for acquiring balance ore from the market. An additional crusher is being installed so as to ensure that high-grade iron ore is made available and the ore is transported to our Raigarh plant by a rail link. The mine has been declared as the best mine by the Director General of Mines Safety, Govt. of India and has an accident-free record for the last 3 years. JSPL provides

residential

accommodation

with

parks,

dispensary, playground and a club for entertainment.

 JINDAL OPEN CAST MINES Our effort has always been to remain self-reliant in all our raw materials, thereby becoming one of the most economical producers of value-added steel and power in the country. The opencast coal mine, situated at a distance of 55 Km from the Raigarh plant, provides coal for captive consumption at the plant. The lease area is 705 hectares with coal reserves of about 100 million MT. The mining operations started in 1999 and today the entire requirement of coal for the plant is being met with. The mine is fully mechanized and has been developed using the latest machinery and equipment. Currently 1.5 million MTPA of coal is being produced. This is expected to increase to 2.5 MTPA by 2002-03. The cost of production of coal is almost 40% cheaper as compared to similar grade of coal available from other organizations. In order to further increase the coal efficiency, a 2.5 million MT per annum capacity coal washery has been commissioned in August 2002. The coal mine and the Raigarh plant are connected by an all - weather metalled road, built by JSPL. The mine is self sufficient, having amenities like housing, dispensary, etc. and a modern colony with a school, hospital, parks and gardens is being planned. Coal is supplied on a 'just-in-time' basis, thereby significantly reducing inventory-holding cost at the plant, ensuring thereby that we are able to market our finished products at highly competitive prices.

31

We are an ISO 9002 and 14001 certified Company, and strive for total customer satisfaction by consistently supplying quality products conforming to mutually agreed product specifications and delivery schedules, thereby establishing leadership in the quality of our products and services. The Quality Control Department is equipped with the latest testing equipment including gas chromatograph, spectrometer, hardness tester, ultrasonic testing equipment and more.

The Rail and Universal Beam Mill, currently under installation at Raigarh, will use the latest

quality testing equipment to ensure world-class products. The

Non-Destructive Testing Line will comprise the following: · Brushing Machine · Laser Straightness Measurement Device · Visual Surface inspection facility · Eddy current Testing Device · Ultrasonic Testing Device

The above machines are being procured from the leading manufacturers in the world with total system integration to ensure world class rails. The hydraulic 4way Gag Press corrects end corrections if any, through lasers.

32

With a view to benefit from the latest innovations in IT tools, an Enterprise Resource Planning (ERP) SAP R/3 Ver 4.66 has been implemented in all the units by Siemens Information Systems Ltd.

Apart from integrating various

functions, the ERP programme will improve coordination, increase productivity and lower cost of production. The attention is focused on quality improvement, cost reduction and customer satisfaction. The report submitted by Anderson Consulting on reducing cost of production is being implemented in letter and spirit. This will strengthen the competitiveness of the products and enhance their  marketability in domestic and global markets.

#

First Prize - ‘National Energy Conservation Award 2007’ in the Integrated

Steel Plants Sector, by the Ministry of Power, Government of India. #

Gold Prize - Greentech Environmental Excellence Award 2006

#

FICCI Annual Award in recognition of Corporate Initiatives in Spor ts- 2006

#

Won the National Energy Conservation Award in integrated steels plant

sector five years in a row from 2001 to 2005. #

Rajiv Gandhi National Quality Commendation Certificate 2001 instituted by

the Bureau of Indian Standards (BIS) in the ‘Large Scale Manufacturing IndustryMetallurgical’ category #

First Prize in the IIM Awards 2001 for Quality by the Indian Institute of 

Metals #

Second prize in the National Safety Award 1998 for longest accident-free

period instituted by the Ministry of Labour, Government of India Vice Chairman and CEO , Mr. Vikrant Gujral the National Energy Mr. receiving Naveen Jindal, EVC and MD, JSPL receiving FICCIfrom Annual Conservation Awardthe2002 Mr. AwardSingh in recognition Corporate Bhairon Shekhawat, of Hon’ble Vice Initiatives in Sports- 2006 from Hon'ble President of India. Prime Minister Dr. Manmohan Singh.

33

PRODUCT PROFILE:

The Rail and Universal Beam Mill has been designed for the manufacture of rails up to 120 meters finished hot rolled length. The plant is also equipped with a Flash Butt Welding Plant for welding of rails from 240 meters to 480 meters long.

Advantages: With the availability of 120 m long rails, there will be drastic reduction of weld population in Indian rail tracks (from 160 welds per track km presently to 17) resulting enhance safety and cost reduction. The performance of Indian Railways would improve on account of enhanced safety, increased reliability, comfort and prolonged rail life.

Rail Steel’s Quality & Product Range : Comprehensive range of rail ormal grade typified

steels can by 710

34

be broadly classified as: N/mm2 minimum UTS

Wear resistant Grade to 1080 N/mm2 UTS.

typified

by

880

N/

mm2

minimum

UTS

Quality Assurance: The quality assurance system of JSPL today is certified by BSI-London for Quality BS: EN 9002:2000 and BS: EN 14001:1996 for Environmental Management System. Autonomous responsibility for self-checking.

Self Certification: Extensive internal and external inspection in conformity with customer  requirements. System of approval by third party inspections prior to dispatch. IMPORTANT: -

Today, the standard requirements of rails must meet the operating needs of the railways for at least 20 years. Rails can be supplied in customized finished lengths ranging from 13 m to 120 m and flash butt welded rails from 240 m up to 480 m.

Larger sizes are being manufactured for the first time in India For the first time in the country; parallel flange beams and columns in larger sizes are being manufactured. More commonly known as H-beams, hot rolled parallel flange beams and columns are the most sought after sections by structural engineers, architects and construction companies the world over.

35

Advantages: With the universal rolling method, beams having same depth but with different flange and web thickness are being manufactured thus giving be a choice of  larger number of beams with different weights in kg/m and statical properties. This is in contrast with the current availability of limited number of conventional I-beams on account of caliber rolling method

The

foundation

of

our

growth

and

diversification:

Steel at our Raigarh plant is being manufactured using the Electric Arc Furnace. The steel melt shop (SMS) is equipped with ladle furnace and vacuum degassing and has continuous casting facilities for wide slabs, rounds and blooms. The steel making capacity at present is 2.40 million TPA. JSPL has recently signed an MoU with the State Government of Orissa to set up a 6 million tonne steel plant with an investment of Rs.13,500 crores and another  MoU has been signed with the State Government of Jharkhand to set up a 6 million steel plant with an investment of Rs.15,000 crores. Carbon & Alloy Steels confirming to National & International Standards like SAE, AISI, DIN,IS and ASTM.

36

Building upon the strength of our unshakeable foundations, JSPL is poised for a quantum leap in the core sector of power, contributing to the growing needs of the nation. At JSPL, we generate power to meet our captive requirements. In 1991, we entered this vital core sector by utilising waste heat from the rotary kiln boilers and the coal rejects of the washery JSPL has 265 MW power generation facility with a capacity expansion to 340 MW on anvil. JSPL is one of India's most economical power producers in the private sector. Jindal Power Limited has been established to sharpen our focus, leading to planned growth with a 1,000 MW super thermal power plant being established in Raigarh district, about 40 kms from our existing plant. This is the first mega power project in the private sector to have achieved financial closure. JSPL with its large experience in installation, operation and maintenance of thermal power plants is the Project Management Consultant (PMC) for the project. The Power Plant will be up and running by 2007. The serious intent of the JSPL foray into power can be gauged from its accelerated pace of expansion and meeting commitments not only on time but well in time. The thrust into this core sector is not only in keeping with our  philosophy of creating opportunities where others see problems, but is also in complete synergy with the businesses we already are in. Our vision of utilising existing in-house strengths to fuel further growth has made us a force to reckon with. JSPL has a long-term commitment to this vital core sector. Jindal Power  Limited will serve to further sharpen our focus on the power sector and thus lead to faster growth.

The

world's

largest

coal-based

sponge

iron

facility

JSPL is one of the lowest-cost producers of sponge iron in India. Backward integration has given JSPL the distinction of being the only sponge iron manufacturer with its own captive raw material resources and power generation. This has enabled JSPL to monitor both price and quality of its products At Raigarh, JSPL has the world's largest coal-based sponge iron manufacturing facility, with aninstalled capacity of 1.37 MTPA, using ten rotary kilns. Sponge

37

iron was the first production facility at the Raigarh plant, commissioned in 1991. In India, JSPL is the market leader in coal-based sponge iron, enjoying a market share of 22%. Today a major portion of our production is used for in-house manufacture of steel at JSPL and the other companies in the Jindal Organisation. As a key raw material for the manufacture of steel, our focus on sponge iron continues.

A wide range of machinery has been manufactured and supplied to prestigious Indian companies including L&T, Lafarge Cement, South Eastern Coal Field, SAIL, Jindal Strips, and Jindal Steel & Power amongst others. The Division is ISO 9002 certified and is equipped with stateof-the-art quality testing and inspection facilities. Some of the machinery manufactured includes gear boxes up to weight of 17 MT, equipment of sponge iron plant, Cold Rolling and Hot Rolling mills; material preparation and handling equipment, etc.

Some of the major equipment manufactured includes

#

Gear boxes up to single piece weight 17 MT

# Equipment for sponge iron plant (shell, support roller assembly, base frames, tyres, girth gears, rotary feeders, etc.) # Material preparation and handling equipment (coal crusher, roller crusher,  jaw crusher, briquetting machine, E.O.T. cranes, scrap charging bucket, etc.) #

Cold Rolling mill equipment (side trimming machine,

coil cars, lopper car, strip separator assembly, steering assembly, bridle assembly, pinch roll assembly, deflector assembly)

38

# Hot Rolling mill equipment (chocks, rolls, pinch roll assembly, manipulator  assembly, etc.) #

Equipment for continuous casting (mould jacket,

mould oscillator assembly, segment roll assembly, carrier frame dummy bar assembly, withdrawal and straightener assembly, roller table, cooling bed, etc.) # Spares for mining equipment (dipper front wall, pulley, bucket, bowl and mantle liner, etc.) # Spares for steel and other plants (peal stem, wear resistant bends, counter  weight level, winch assembly, etc).

4Ps of the Organization: Place Domestic Market India International Market Singapore Middle-east Iran Germany

Products Semi- finished Products Casting Stripes Bloom

39

Slabs Rounds Flats

Finished Products Billets Beams Columns

Price 

Semi-finished Products Domestic market- Rs 27,000-28,000/- per ton Export market- Rs 40,000-50,000/- per ton



Finished Product Domestic market- Rs 1,00,000-1.5,00,000/- per ton Export market- Rs 4300,000-3.5,00,000/- per ton

Promotion Print advertising in all National and International news paper  On-line Promotion

Problem areas in Jindal Jindal Steel & Power Limited is such kind of firm that works in forward integration. In such kind of firm, it is very difficult to identify the problem areas without having SWOT analysis of the firm. Hence we have stepped towards the SWOT analysis of  Jindal Steel & Power Limited.

40

SWOT Analysis of Jindal Steel & Power Limited Strengths Largest Integrated Steel player in India. Cost Efficiencies arising out of : Captive power generation. In house manufacture of HCFC. Economies of scale due to melting capacity. Of 250,000 tones. Restructuring would enable focus on core strengths / core competencies. Ability to produce 300/400 series. (growth segment) Has cold rolling capacities which result in: Value added products. Production of international grade Stainless Steel facilitating exports.

Weaknesses High Gearing. Capital blocked in-group company investments.

Opportunities Massillon Acquisition (USA) to provide a foothold. In the developed US market, which is the largest.

41

Market for Steel in the world. Operations and could greatly enhance its suite. Of value added products. Present import duty structure allows protection. And growth opportunities in domestic market. Low per capita consumption in India for Steel. Exploring rural market. Leaves scope for volume growth. Import substitution for wide width thin gauge.

Threats Entry by global players and dumping by Asian countries. Operations sensitive to global prices of steel. Change in govt. policy on duty protection for steel.

Problem areas in Jindal Steel Port facility is not easily accessible. Lack of Expenditure in R&D Delay in absorption of technology by the existing units Lack of facilities to produce various shapes and qualities of finished steel on demand. Limited access of Jindal to good quality of iron ore, which are normally earmarked for exports. High level Taxation Lack of interest in international competitiveness on determinants like product design, product quality, on-time delivery, post sales service etc. •

42

PROCESS FLOW OF JSPL

43

PRODUCTION PROCESS: DRI (DIRECT REDUCED IRON) # 01 (COAL BASED SPONGE IRON PLANT) CAPACITY: - 300MT/ DAY/ KILN PRODUCTION: - 330 MT/ DAY/ KILN Every company tries to reduce its cost of production so that it can maximize its profits. We at Jindal try to produce best quality steel at lowest possible price so that we don’t have to compromise on quality and at the same time we have a control over  our pricing. Towards this end we produce direct reduced iron at our two DRI PLANTS :- DRI -1 and DRI-2.

WHAT IS SPONGE IRON? SPONGE IRON

Sponge iron is a porous structures obtained by reduction in iron ore. It is the raw material for making steel. Its main usage lies in using it as an alternate for scrap in steel making .Sponge iron is used heavily in making steel because it is cheaper than scrap. It is in usage since 1960-65 but it has been heavily used since 1980.

RAW MATERIELS FOR SPONGE IRON: 1. IRON ORE 2. COAL 3. DOLOMITE

44

DRI # 1 PRODUCTION OF SPONGE IRON: (2006-07)

PARTICULARS PRODUCTION (IN MT) KILN 1

1,02,037 1,01,978 1,08,639 1,05,854 1,06,450 1,10,080 6,35,038

KILN 2 KILN 3 KILN 4 KILN 5 KILN 6

TOTAL

NOTE: There are 6 kilns in DRI#1. There are 4 kilns in DRI#2.

DRI – II Capacity

- 500 ton /day/kiln

Total no. Of kiln

-4

Total capacity

- 2000 ton/day

Raw material used

- Iron ore, coal and dolomite.



Components:     

Kiln (82 mt long) Cooler (50 mt long) Day bin (2) Waste heat recovery boiler  Shell air fan, etc

Working of DRI-II & DRI-I is similar.

45

RANK   5 6 2 4 3 1

FLOW CHART OF DRI:

RAW MATERIALS

KILN (PREHEATING AND REDUCTION ZONES)

COOLER  PRODUCT HOPPER  MAGNETIC SEPERATION SPONGE ORE PACKING PLANT

DESPATCH

46

CHAR 

POWER PLANT WASTE HEAT RECOVERY BOILER (WHRB):

PRODUCTION: - 250MW/HOUR (JSPL)  NUMBER OF BOILERS: - (TOTAL: - 17) WHRB: - 10 COAL BASED: - 7 Any industry without power is unimaginable. At Jindal we already have 17 boilers which perform the crucial task of generating power for us. In future we hope to increase the no. To 26. One of the important boilers is the waste heat recovery boiler . The production capacity of one WHRB is 250 mw/hour .At present we boast of 10 WHRBs out of  which 7 are coal based. The DRI plants and power plants work towards same purpose .The steam generated out of the DRI plants is used to generate power at power plants.5 tones of steam is used to make 1 mw power. This process also involves turbines. The no of turbines at Jindal is 5. 2 turbines of 25 mw capacities. 2 turbines of 20.8 mw capacities. 1 turbine of 10 mw capacities Note: - Steam, which is released after process from DRI, is used to generate POWER, it is cheaper than coal based power plant.

47

FLOW DIGRAM OF POWER GENERATION: -

FLUE GAS

BOILER  (HEAT1000)

STEAM

TURBINE

 NUMBER OF TURBINES: - 5 2 TURBINES OF 25 MW CAPACITIES 2 TURBINES OF 20.8 MW CAPACITIES 1 TURBINE OF 10 MW CAPACITIY

48

POWER 

STEEL MELTING SHOP II (STEEL) M E T

A L

H O T

DRI

Scrap

Oxygen

E A F

Sub station FES Water Complex

L R F

Vacuumed degassing

Ladle area

Oxygen

CASTER 

Sub station FES Water Complex

DRI: Direct Reduced Iron EAF: Electric Arch Furnace LRF: Ladle Refining Furnace

49

Materials required to make 1 MT of Steel: Sr. No. 1 2 3 4 Total

Raw materials Scrap Hot Metal DRI Fines DRI Lumps

% ag 5 25 15 55 100

Qt. (In MT) 5 35-40 20 60 120

RAIL & UNIVERSAL BEAM MILL:

P R O C E S S R O U T E F O R R A IL

50

JINDAL STEEL & POWER LTD (Sectional Properties of finished pdt Parallel Flange Beams & Columns, Rails, Crane Rails & Channels produced at RUBM, Raigarh) Sectional Weight Beams/ Columns w Kg/m PARALLEL FLANGE BEAMS UB 203X133X 25 25.1 UB 203X133X 30 30 Description

UB 254x146x31 UB 254x146x37 UB 254x146x43 UB 305 x 165 x 40 UB 305 x 165 x 46 UB 305 x 165 x 54 UB 356 x 171 x 45 UB 356 x 171 x 51 UB 356 x 171 x 57 UB 356 x 171 x 67 UB 406 X 178 X 54 UB 406 X 178 X 60 UB 406 X 178 X 67 UB 406 X 178 X 74 NPB 450 x 190 x 67.2 NPB 450 x 190 x 77.6 NPB 450 x 190 x

Total Depth H mm

Flange Thickness Thickness Width of Web of Flange b tw tf mm mm mm

Root radius r mm

Area of  section A cm2

203.2 206.8

133.2 133.9

5.7 6.4

7.8 9.6

7.6 7.6

31.97 38.21

31.1 37 43

251.4 256 259.6

146.1 146.4 147.3

6 6.3 7.2

8.6 10.9 12.7

7.6 7.6 7.6

39.68 47.17 54.77

40.3

303.4

165

6

10.2

8.9

51.32

46.1

306.6

165.7

6.7

11.8

8.9

58.75

54

310.4

166.9

7.9

13.7

8.9

68.77

45

351.4

171.1

7

9.7

10.2

68.95

51

355

171.5

7.4

11.5

10.2

76.52

57

358

172.2

8.1

13

10.2

85.54

67.1

363.4

173.2

9.1

15.7

10.2

94.51

54.1

402.6

177.7

7.7

10.9

10.2

68.95

60.1

406.4

177.9

7.9

12.8

10.2

76.52

67.1

409.4

178.8

8.8

14.3

10.2

85.54

74.2

412.8

179.5

9.5

16

10.2

94.51

67.2

447

190

7.6

13.1

21

85.5

77.6 92.4

450 456

190 192

9.4 11

14.6 17.6

21 21

98.8 117.7

51

92.4 NPB 500 x 200 x 79.4 NPB 500 x 200 x 90.7 NPB 500 x 200 x 107.3 NPB 600 x 220 x 107.6 NPB 600 x 220 x 122.4 NPB 600 x 220 x 154.5 WPB 600 x 300 x 128.8 WPB 600 x 300 x 177.8 WPB 600 x 300 x 211.9 WPB 600 x 300 x 285 WPB 700 x 300 x 149.9 WPB 700 x 300 x 204.5 WPB 700 x 300 x 240.5 WPB 700 x 300 x 300.7

Description Beams/ Columns

79.4

497

200

8.4

14.5

21

101.3

90.7

500

200

10.2

16

21

115.5

107.3

506

202

12

19

21

136.7

107.6

597

220

9.8

17.5

24

137

122.4

600

220

12

19

24

156

154.4

610

224

15

24

24

196.8

128.8

571

300

12

15.5

27

164.1

177.8

590

300

13

25

27

226.5

211.9

600

300

15.5

30

27

270

285

620

305

21

40

27

363.7

149.9

670

300

13

17

27

190.9

204.5

690

300

14.5

27

27

260.5

240.5

700

300

17

32

27

306.4

300.7

716

304

21

40

27

383

Sectional Weight

w Kg/m PARALLEL FLANGE COLUMNS UC 152x152x23 23 UC 152x152x30 30 UC 152x152x37 37

Total Depth H mm

152.4 157.6 161.8

Flange Thickness Thickness Width of Web of Flange b mm

152.2 152.9 154.4

52

tw mm

tf mm

5.8 6.5 8

6.8 9.4 11.5

Root radius

Area of  section

r mm

A cm2

7.6 7.6 7.6

29.25 38.26 47.11

UC 203 x 203 X 46 UC 203 x 203 X 52 UC 203 x 203 X 60 UC 203 x 203 X 71 UC 203 x 203 X 86 UC 254 X 254 X 73 UC 254 X 254 X 89 UC 254 X 254 X 107 UC 254 X 254 X 132 UC 254 X 254 X 167 UC 305 x 305 x 97 UC 305 x 305 x 118 UC 305 x 305 x 137 UC 305 x 305 x 158 UC 305 x 305 x 198 UC 305 x 305 x 240 UC 305 x 305 x 283

46.1

203.2

203.6

7.2

11

10.2

58.73

52

206.2

204.3

7.9

12.5

10.2

66.28

60

209.6

205.8

9.4

14.2

10.2

76.27

71

215.8

206.4

10

17.3

10.2

90.43

86.1

222.2

209.1

12.7

20.5

10.2

109.6

73.1

254.1

254.6

8.6

14.2

12.7

93.1

88.9

260.3

256.3

10.3

17.3

12.7

113.3

107.1

266.7

258.8

12.8

20.5

12.7

136.4

132

276.3

261.3

15.3

25.3

12.7

138.1

167.1

289.1

265.2

19.2

31.7

12.7

212.9

97

307.9

305.3

9.9

15.4

15.2

123.4

117.9

314.5

307.4

12

18.7

15.2

150.2

136.9

320.5

309.2

13.8

21.7

15.2

174.4

158.1

327.1

311.2

15.8

25

15.2

203.4

198.1

339.9

314.5

19.1

31.4

15.2

252.4

240

352.5

318.4

23

37.7

15.2

305.8

282.9

365.3

322.2

26.8

44.1

15.2

360.4

CRANE RAILS

CR-80 64.2 CR-100 89 RAILS UIC60 60.34 IRS -52 52 Channels ISMC 250 x 80 30.6 ISMC 250 x 82 34.2 ISMC 300 x 90 36.3 ISMC 400 x 100 50.1 Cyy is centre of gravity along YY Axis

53

UC - Bristish Univeral Columns

NPB - Narrow Parallel Flange Beams IS Code 12778 -2004 WPB - Wide Parallel Flange Beams IS Code 12778 - 2004

UB - British Universal Beams HE - European Wide Flange Beams IPE - European Narrow flange Parallel beams

Plates JSPL has taken another step towards it spirit of bringing first of their kind products in to the country. JSPL commissioned its 1 million tonne per annum capacity 3.5 meter wide Plate mill on 31st March'2007, which has a Steckel rolling facility equipped with level-2 automation system.

JSPL's plate mill can supply Plates in thickness ranging from 6 mm to 150 mm, in widths ranging from 1500 mm to 3500mm •

and lengths from 3 meter to 12.5 meter (or as per  requirement). •

Coils in thickness ranging from 6 mm to 16 mm in widths ranging from

1500 mm to 3000mm with a maximum coil weight of 30 MT. Backed by state-of-the-art steel making and refining facilities and a slab caster of  upto 2600 mm maximum width, plans are afoot at JSPL to develop and supply coils and plates in a variety of steel grades to serve wide ranging applications for  the user industry. These will include general engineering and structural grades, Hi-Tensile grades, Boiler quality & Pressure Vessel grades, Shipbuilding grades, API grades upto X-80 quality for the Line Pipe industry, Wear resistant, Corrosion resistant, and HSLA grades. Plates can be supplied in as per Indian as well as equivalent international standards such as ASTM, BS, EN, DIN, etc. The mill uses slabs in thickness 215, 250, and 280 mm, which are reheated in a 200 MT/hr capacity walking-beam type reheating furnace. High pressure primary and secondary descalers operating at a pressure of 200 bar are used for  descaling. Rolling is done in a 2-Hi roughing mill with a cross-rolling facility and a vertical edger with automatic width control feature and thereafter in a 4-Hi reversing type-finishing mill with Steckle furnaces on the entry and exit side.

54

Plates can be produced with an "Accelerated Cooling Control (ACC) " system to achieve normalised rolling (on-line normalising) properties in plates. The mill is equipped with a hydraulic automatic gauge control system and X-ray gauge for  thickness control. The mill is installed with an on-line heavy leveler after finishing for flatness control and a shearing facility for cutting of plates into required lengths. Inspection facilities include on-line ultrasonic testing facility, on-line plate tilting facility for both surface inspection, and a host of modern laboratory facilities to ensure strict quality control on plates as per the product development plan. Orders are already being accepted by the mill for both domestic and export sales. 3.5 meter wide plates and 3.0 meter wide coils from JSPL's Plate mill are attracting a great deal of interest from the designers and end users across the Indian industry due to their extended dependence on imported plates at high costs. •

Widest available widths in the country.

•

Wide range of possible steel grades.

•

High degree of steel quality due to negligible inclusion

SUBMERGED ARCH FURNACE (SAF): Capacity: 120 Mt Production: 100 Mt SAF plant basically produces Ferro chrome, which is used in Steel Melting Shop. Followings are raw materials for SAF: 1. Briquette 2. Coke 3. Fluxes

Flow Diagram: 55

Raw material feeding Ground hopper

Conveyor  10 no’s raw material storage DAY BINS

Conveyors 3 no’s raw material Weigh hopper

Conveyors Power supply Through electrodes

10 no’s raw material charge Mix hopper

Fume extraction System

Chutes SUBMERGED ARC FURNACE

Metal for handling & Dispatch

BUSINESS PROCESS

56

Slag disposal for Low lying areas filling

The steel industry today provides a large market in every country. it is one of the fastest growing sectors all over the world. But yet much potential remains to be developed by each company present in this sector to met the growing demand. even today supply of steel is less than demand. To overcome competition, the best option is to develop a strong business process.

Broadly any business process consists of following five categories: -

The market sensing process The new offering realization process The customer acquisition process The Customer relationship process The fulfillment process

The market sensing process:

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All the activities involved in gathering market intelligence, disseminating it within the organization, and acting on the information.

The new offering realization process: All the activities involved in researching, developing, and launching new high quality offerings quickly and within budget.

The customer acquisition process: All the activities involved in defining target markets and prospecting for customers.

The customer relationship process: All the activities involved in building deeper understanding, relationship, and offerings to individual customers.

The fulfillment management process: All the activities involved in receiving and approving orders, shipping the goods on time, and collecting payment.

Business process in JSPL: Enquiry Contract review Quotation Purchase order from party Order booking Production/ stock Payment Delivery

1. MARKET SENSING PROCESS

It is important to study the trend and direction of the present market so that we can produce what the customer demands and actually needs. There are various ways to achieve this including the following ways underwritten: -

(a) Market study

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This is done by contacting various consultants, designers and original equipment manufactures. This gives an opening towards upcoming new projects.

(b) Internet Today every new development is on the net. It is the best and most dynamically connected information network up till now. If anything is happening in the world then it must be on the net. Therefore it is the best way to get information about the status quo of the steel market. (c) Project magazines Magazines on power, new scientific developments and upcoming projects in the steel industry are loaded with information needed for any company in this industry. they provide a good base to the companies to start with and design new options for the customers. 2. NEW OFFERINGS

The next step is to provide new offerings to the customer because the customer is dynamic and easily swayed by other choices. It is a good policy to provide him a new product, which is feasible with his demands. For example, we at Jindal provide the customer a “parallel flange concept” product instead of the existing tapered beam. These flanges have a higher tensile strength plus there production cost is less. 3. CUSTOMER ACQUISITION

Every marketer wants to grab a larger customer base, which is possible through good customer relationship management. This includes each and every small and big thing related to the customer right from the contract terms to the logistics or  even his preferences of various products. 4. CUSTOMER FEEDBACK 

Customer feedback is important because it helps in shaping the future decisions for the company. It also brings into focus the loops and holes of the existing policies of the company. The customer is the king and therefore it is utmost important to pay needful attention to this part of business process. This focus can be maintained through (a) Organizing meetings for all the dealers (b) Seminars for all the customers (c) Developing customer advantage programs

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5. FULLFILLMENT OF THE PROCESS

This step is actually an inherent process in all the steps of business process. it compares the set target and the achieved points so that the management can analyze the success of present policies and visualize if any changes are needed in the present structure of the company. This includes working on the following points: (a) Market development ie designing future targets. (b) Achievement of sales target. (c) Checking whether customer acquisition has been successful ie comparing the customer base of competitors and our own. (d) Updating on the financial status of the company ie checking on the B/S and P/L statements. (e) Driving demand for our product through continuous expansion in our products by providing good quality products (f) Creating global value for the company with consistency in the quality of the product and customer satisfaction.

EXPORT IN JINDAL Modes of entry into the foreign land Jindal Steel & Power limited has not only passionate to satisfy the demand of  domestic market but also targeted the international market. It has chosen market opportunity in countries like Singapore, Middle-east, Germany, and Iran etc. Jindal has not established any premises outside the home country. It mainly promotes its products by various international traders. Jindal also supplies its products to some major steel players in international market. It relies upon home-country production to supply product for these markets. The focus in this stage is upon leveraging home-country products and experience. Products for export

Flange Beams Columns Hot rolled parallel flange beams and columns are the most sought after sections by structural engineers, architects and construction companies’ world over.

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With infrastructure development taking the front seat in today’s global scenario, Indian engineers and architects are looking beyond the conventional, obvious and exploring better options to win over the challenges of modern construction. In comparison Jindal steel and Power limited has readily available broad range of  universal beams having multiple flange widths and thick nesses for each size range, thereby leading to increased economy in use. It facilitates bolted or welded construction. It ensures quality of material and construction. It also enhances life cycle performance and durability. Jindal’s flange beams and columns are made with international competitive determinants like quality of product, various shapes of products, which can meet international parameters.

EXPORT PROCEDURE The below-mentioned responsibilities/documentation have to be undertaken by respective offices as mentioned for all export deals with the aim to streamline the internal processes and meet export targets. A-NEW DELHI OFFICE:

1. Order and L/C Confirmation –(Copies to be sent to Raigarh & Mumbai) B-RAIGARH OFFICE:

2. Following documents to be sent along-with material: a) b) c) d) e)

Mill Test Certificate Certificate of Origin Packing List (provisional) – for inland transport Commercial Invoice (provisional) – for inland transport ARE-1 Form [for Excise Exemption] f) EPCG License No. for claiming benefits - In case EPCG License available in Delhi (Original) [ i.e 0245681,0245742 &0318973]same will be sent to port otherwise Raigarh to coordinate with Excise Department.

C-TO BE PREPARED AT PORT:[ MUMBAI OFFICE /VIZAG etc]:

g) Commercial Invoice (FINAL) in 4 Copies (ORIGINAL) h) Packing List (FINAL) in 3 Copies (ORIGINAL)

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i) 3/3 ORIGINAL + 2 Non-Negotiable Copies of clean Bill of Lading as per orders + Marked (Freight pre-paid) + Notify to Applicant/Insurer/Issuing Bank.   j) Bill of Lading to mention carrying vessel’s name, address, tel/ fax no’s. k) Certificate of Origin in Duplicate duly endorsed (as received from Raigarh). l) Certificate by Carrier / Master / Agent certifying that it can call on port of shipment. m) Certificate by Carrier / Master / Agent certify shipment is through conference Line / Regular Line Vessel and age of the vessel with fitness. n) Endorsement in Customs for claiming EPCG benefit. o) Application for DEPB Benefit to be claimed by JSPL. p) Insurance Policy (if applicable) for full invoice value + 10%.

D-L/C REALISATION:

To realize payment against LC for the various export shipments relevant documents to be sent to Delhi office for LC negotiation .

Factors drive Jindal for Export Products Mix

The products mix of Jindal specially the flange beams having specification like UB (British Universal Beams as per BS 4-1: 1993, IPE series, and columns having specifications like UC (British Universal Columns as per BS 4-1: 1993), crane rails are only manufactured looking at the demand of foreign market. So these products has to be sold in international market. There is a sluggish demand for these products in domestic market. Domestic Market

In India domestic market demand is a derived demand for steel. Jindal produces 33.5 tones of steel per month. The domestic market cannot sustain the total production. So there is a balance of products, which has left due to domestic demand. Hence the company is forced to export the product. Technological Constraints

Due to the technological constraints Jindal is bound to produce 3-3.5 lac tones per  annum. But Indian market generally consumes 2-2.5 lac tones of steel from the firm. So the rest 1-1.5 lac tones of steel per annum have to be store in the

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stockyard. But the firm cannot idle its machineries. Some time it force the firm to export. EPCG (Export Product Counter Guarantee)

Jindal has imported many plants, machineries and equipments. In some import agreements its been mentioned to export the product that will be produce by using these equipments. So this drives to export. Price Realisation by DEPB (Duty Entitlement Pass Book Scheme)

In this scheme Jindal is force to export, as it will get relaxation on import duties. Jindal imports machineries and it has to pay handsome amount of duties to Govt. of  India. If Jindal dose an agreement to export then it will avail the benefits as a discount on import duties. FOB (Free On Board)

In FOB Jindal gets an advantage of 10% incentive at the port. So that drives Jindal to export.

Export fit to Jindal Jindal exports its products to the international clients through agents, indenters and traders. As Jindal is not having export houses in abroad to look all the formalities it consult with the traders like COROUS, ME GRADE and major steel players like ARCELOR and STEMCOR. It promotes its export sale by supplying the product to these traders in various countries like Singapore, Middle-east, Germany and Iran. Jindal does the shipment and transportation from Mumbai port after the party has paid the export duties. Jindal’s proforma export invoice is attached to provide the detailed information about export sales.

CUSTOMER SATISFACTION Integrated management action explained above, is a means, not an end in itself. It is the means for fulfilling the needs of the customer. And this leads us to the third

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major distinguishing feature of the marketing concept, namely, customer  satisfaction. The marketing concept emphasises that it is not enough if a firm has consumer orientation; it is essential that such an orientation lead to a consumer  satisfaction. The concept underscore that no firm can afford to ignore consumer  satisfaction. As per the marketing concept, a firm can realize all its business goals by generating customer satisfaction. The idea may sound somewhat utopian .In reality; it is an eminently workable proposition.

MEASURING SATISFACTION: The customer-centered firm seeks to create high customer satisfaction, which is not its main goal. If the company increases customer satisfaction by lowering its price or increasing its services, the result may be lower profits. The company might be able to increase its profitability by means other than increased satisfaction (for example, by improving manufacturing process or investing more in R&D). Also, the company has many stakeholders, including employees, dealers, suppliers, and stockholders. Spending more to increase customer  satisfaction of other "partners." Ultimately the company must operate on philosophy that is trying to deliver a high level of customer satisfaction subject to delivering acceptable levels of satisfaction to the other stakeholders, given its total resources.

When customer rate their satisfaction with an element of the company's performance say, delivery-the company needs to recognize that customers vary in how they define good delivery. It could mean early delivery, on- time delivery, order completeness, and so on. Yet if the company had to spell out every element in detail, customers would face a huge amount of questionnaire. The company must also realize that two customer can report being "highly satisfied" for different reasons. One may be easily satisfied most of the time and other might be hard to please but was pleased on this occasion. Now it can be measure through CSI (Customer Satisfaction Index)

Roll of Marketing Mix on Customer Satisfaction:

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Marketing mix is the set of marketing tools the firm uses to pursue its marketing Objective in the target market. These tools are classified into four broad groups that are called as the four Ps of marketing: Product, price, place and promotion. These four Ps plays a vital role in customer satisfaction.

Product: Generally the customer gives more importance to the product quality, verity, design, features, brand name, packaging, sizes, services, warranties etc. All the customer may not satisfied with all the features. Some may be with product quality, some with verity, some with brand name or services etc. So more verity, better product quality, more features, attractive design, good packaging, long warranties or better service may increase the level of customer  satisfaction.

Price: The price factor is directly related to customer cost. Product cost is the most essential factor for the customer. During the purchase of a product the customer  mainly concentrate on the cost of the product, discount factor etc. So low cost or  more discount may increase the customer satisfaction. Now some company are adapting the long-term payment period or giving the product on credit basis, which helps them in improving their customer satisfaction.

Promotion: It is the mode of communication between the customer and the company and the customer. It deals with the sales promotion, advertising, sales forces, public relation, direct marketing. Many companies spend more money on advertising, promotion etc. for the better  communication with the customer. Which will help the customer to remind their  product during the purchase of same category product. This may indirectly help in increasing the customer satisfaction.

TOOLS FOR TRACKING CUSTOMER SATISFACTION:

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Complaint & suggestion system: A customer-centered organization makes it easy for customers to 'register, suggestions and~ complaint. Some customer-centered companies establish but lines with toll-free numbers. Companies are a1sousing;websites and e-mail for  quick way communication.

Customer satisfaction surveys: Studies show that although customers are dissatisfied with one out of every four  purchases, less than five percent will complain. Most customers will buy less or  switch suppliers. Responsive companies measure customer satisfaction directly by including periodic surveys. While collecting customer satisfaction data, it is also useful to ask additional question to measure repurchase intention and to measure the likelihood or willingness to recommend the company and brand to others.

Ghost shopping: Companies can have people to pose as potential buyers to report on strong and weak points experienced in buying the company's and competitors Products. These mystery shoppers can even test how the company's sales personnel handle various situations. Managers themselves should leave their offices from time to time, enter company and competitor sales situations where they are unknown, and experience firsthand the treatment they receive. A variant of this is for managers to phone their own company with questions and complaints to see how the calls are handed.

Lost customer analysis: Companies should contact customer who have stopped buying or who have switched to another suppliers to learn why this happened. Not only is it important to conduct interviews when customers first stop buying; it is also necessary to monitor the customer loss rate.

Report On Customer Feedback (24/07/08)

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CUSTOMER  NAME

ADDRESS

Goyal Global Steel Supplier

216, Deshbandhu Complex, Near   Agrasen Chowk, Raipur (C.G.)

Ambika Steels

212, Arihant Complex, Station Road, Raipur (C.G.)

FEEDBACK 1. Supply chain to be maintained. 2. There should be customer  meet timely. 3. There is late action against order booking.

REMARK   





JSPL should be more trade oriented to capture good market share in Raipur region, which is considerably big market. Mr. B. Agrawal (Entrepreneur) was out of   station. Shatruhan has given feedback form to subordinate.

LOGISTICS: Importance

Logistics is the one important function in business today. No marketing, manufacturing or project execution can succeed without logistics support. For  companies, 10 per cent to 35 per cent of gross sales are logistics cost, depending on business, geography and weight/value ratio. Logistics is comparatively a new term, but not the operation. Logistics has existed since the beginning of civilisation. Raw material and finished products had always to be moved, though on a small scale. Things began changing with the advance in transportation. Population began moving from rural to urban areas and to business centres. No longer did people live near production centres, nor did production take place near residence centres. The geographical distance between the production point and consumption point increased. And logistics gained importance. Another factor has come into play recently. Since the early 1990's, the business

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scene has changed. The globalization, the free market and the competition has required that the customer gets the right material, at the right time, at the right point and in the right condition… at the lowest cost.

Logistics in JSPL: Making good products cannot be satisfactory to the customer if we cannot provide it in good condition and safe packing. Logistics therefore forms an important part of the customer satisfaction process. The first step of course is quality inspection. After quality inspection from the RUBM, finished goods come into the hands of the logistics department. These goods are then categorized according to their quality. Quality can be categorized as follows: 1. Prime 2. Non prime 3. Defective 4. Short length 5. Refinish 6. Cut bar  7. Stack According to the category the products are placed in ,the products are worked upon again. A proper storage place is just as crucial as the product itself .Yards of proper  measurement and safety are used here at Jindal .The following yards are used for  this purpose: 1. GH bay 2. FG bay 3. south yard 4. open gantry 5. b5 area 6. new yard.

Exports From the logistics department the goods can be used for domestic sales or  exports as the case may be . The materials which are to be exported are formed into bundles first and then exported . The bundles may contain 5 or 7 pieces . A maximum of 500 mt goods are released for export at a time.

Findings

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According to analysis and observation. I settled down with the following findings: -

JSPL has the world's largest coal-based sponge iron manufacturing facility, with an installed capacity of 1.37 MTPA 1.

2. The second core strength of the company is Power. 3. Manufacturing world's longest 120 m long rails for the first time in India 4.

In the world of business, the Jindal Organization is a celebrity, Ranked sixth amongst the top Indian Business Houses in terms of assets, the Group today is a US $8 billion conglomerate.

5. JSPL is one of the lowest-cost producers of sponge iron in India. 6. JSPL is the market leader in coal-based sponge iron, enjoying a market share of 22%.

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Conclusion

In accordance to analysis and study conduct by me on the topic of production process, product and business process of  JSPL, It is concluded that working in JSPL is a great way to go-ahead. Today JSPL has taken several steps towards its spirit of bringing first of their kind products in to the country. It is the Largest Integrated Steel player in India and has the ability to produce 300/400 series. (Growth segment).At JSPL, environment protection is an integral part of operations and JSPL are an ISO 14001 certified Company. It also takes part in social responsibility like in education, hospitals etc.

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SUGGESTION •

Marketing, Logistics & Q.C. department should maintain harmonious relations with each other.

•

Business process can be reengineered.

•

R&D department should be developed as soon as possible.

•

More professionals should be hired.

•

Company should give attention to Raipur region, as it is big market.

LOGISTICS: •

Reduce the loading time

• •

Get in and get out time should be reduced.

• •

There is need of more yards, since company is going for expansion.

• •

Enough places for trailer parking

• •

Cancellation of loaded trailer should be avoided.

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BIBILIOGRAPHY Books    

Warren J Keegan – Global Marketing Management Philip Kotler – Marketing Management Hill Richard – Industrial Marketing Jindal Steel & Power limited Product catalogue

Internet Websites     

www.jindal.com www.jindalsteelpower.com www.agencyfaqs.com www.indiainfoline.com www.economicstimes.com

Production

JSPL has shown growth in production of all its major products. Details of growth in production for the quarter ended June 30, 2008 with the corresponding quarter in the previous financial year are as under:

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