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BHILAI STEEL PLANT

a) INDUSTRIAL PROFILE:
During struggle for independence MR. Jawaharlal Nehru, our first prime minister, had
very clear vision about the role of steel in the development of our country although
TATA Iron &Steel company [TISCO] has been establish in 1907 marking the
beginning of Indian steel industry followed by Indian steel company. [1918], they
were too small to meet the development requirement of a big country like ours.
Therefore, in the 1st industry policy resolution of the govt...Soon after independence.
Govt. decided to establish steel plants in public sector. However, work could be started
at fast pace only in1954, when Hindustan steel Ltd., was formed and three steel plants
of 1mt capacity each, were established with provision of further expansion at Bhilai.
Rourkela and Durgapur with assistance from USSR, West Germany and U.K
.respectively.
To improve the functioning of steel Industry, Government. Decided to from a
holding company during 1972, which was named as steel authority of India[SAIL]and
the same was incorporated on January 24,1973, with authorized capital of RS.2000
crores.
SAIL was formed by registration of a company under company’s act and not by
act of parliament decided to abandon the holding company concept in 1978 and a bill
was presented to the loksabha. Accordingly, SAIL was again recognized in the
following manner.
Hindustan steel ltd, Bokaro Steel Ltd, Salem Steel ltd SAIL international ltd
Bhilai Ispat Ltd, Rourkela Ispat Ltd, Durgapur Mishra Ispat ltd wholly owned
subsidiaries of sail merged into it and started functioning as units of SAIL.
MECON, HSCL and NMDC become important companies and started
functioning under ministry of steel. However, kiriburu and meghatuburu iron ore
mines were attached with BSL as their captive mines.
Bharat Refectories Ltd. Also become independent under the ministry of steel and
refractory unit also came under them.
Thus sail at present is having capacity of 10.9 MT of crude steel through its four
integrated steel plants, at bhilai, bokaro, Durgapur and Rourkela. Two special steel
plants at Durgapur and salem produce a wide distribution network consisting of a
chain of stock yards and distribution centers.

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COMPANY PROFILE:-
a). BACKGROUND AND INCEPTION OF THE
COMPANY
Bhilai steel plant is the leading steel-making company in India. It is a fully integrated
iron and steel maker, producing both basic and special steels for domestic
construction, engineering, power, railway, automotive and defense industries and for
sale in export markets. Ranked amongst the top ten public sector companies in India in
terms of turnover, BSP manufactures and sells a broad range of steel products,
including hot and cold rolled sheets and coils, galvanized sheets, electrical sheets,
structural, railway products, plates, bars and rods, stainless steel and other alloy steels.
SAIL/BSP produces iron and steel at five integrated plants and three special
steel plants, located principally in the eastern and central regions of India and situated
close to domestic sources of raw materials, including the Company's iron ore,
limestone and dolomite mines. The company has the distinction of being India’s
largest producer of iron ore and of having the country’s second largest mines network.
This gives BSP a competitive edge in terms of captive availability of iron ore,
limestone, and dolomite which are inputs for steel making. Sail’s wide range of long
and flat steel products are much in demand in the domestic as well as the international
market.
This vital responsibility is carried out by BSP own Central Marketing
Organization (CMO) and the International Trade Division. CMO encompasses a wide
network of 34 branch offices and 54 stockyards located in major cities and towns
throughout India. With technical and managerial expertise and know-how in steel
making gained over four decades, SAIL's/BSP Consultancy Division (SAILCON) at
New Delhi offers services and consultancy to client’s world-wide. BSP has a well-
equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi
which helps to produce quality steel and develop new technologies for the steel
industry. Besides, BSP has its own in-house Centre for Engineering and Technology
(CET), Management Training Institute (MTI) and Safety Organization at Ranchi. Our
captive mines are under the control of the Raw Materials Division in Kolkata. The
Environment Management Division and Growth Division of BSP operate from their
headquarters in Kolkata. Almost all our plants and major units are ISO Certified.

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Major Units

Integrated
Steel Plants
• Bhilai Steel Plant (BSP) in Chhattisgarh
• Durgapur Steel Plant (DSP) in West Bengal
• Rourkela Steel Plant (RSP) in Orissa
• Bokaro Steel Plant (BSL) in Jharkhand
• IISCO Steel Plant (ISP) in West Bengal

SPECIAL STEEL PLANT

• Alloy Steels Plants (ASP) in West Bengal


• Salem Steel Plant (SSP) in Tamil Nadu
• Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

SUBSIDIARY

• Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures
SAIL has promoted joint ventures in different areas ranging from power plants to
e-commerce.

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NTPC SAIL A 50:50 joint venture between Steel Authority of India


Ltd. (SAIL) and National Thermal Power Corporation
Power Company Pvt.
Ltd. (NTPC Ltd.), it manages the captive power plants
Ltd
at Rourkela Durgapur and Bhilai with a combined
capacity, of 314 megawatts (MW)

This 50:50 joint venture between SAIL and the


Bokaro Power Supply Damodar Valley Corporation formed in January 2002 is

Company Pvt. Limited managing the 302-MW power generation and 1880 tons
per hour steam generation facilities at Bokaro Steel
Plant.

A joint venture between SAIL and Tata Steel on


Mjunction 50:50 basis, this company promotes e-commerce
SERVICES Limited activities in steel and related areas.

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SAIL- BANSAL SAIL has formed a joint venture with BMW industries
SERVICE CENTER LTD. On 40:60 basis to promote a service centre at

LTD BOKARO with the objective of adding value to steel.

BHILAI JP CEMENT LTD

BSP has also incorporated a joint venture company with M/S Jaiprakash Associates
Ltd to set up a 2.2 MT cement plant at BHILAI..SAIL/BSP has signed an MOU with
Manganese Ore Ltd [MOIL] to set up a joint venture company to produce
ferromanganese and silico-manganese at Bhilai

b) NATURE OF BUSINESS CARRIED

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Bhilai Steel Plant, an integrated steel works, was commissioned in 1959 with
production capacity of 1.0 million tons of steel. In successive phases, capacity was
enhanced to 2.5 and 4.0 million tons in the year 1962 and 1984 respectively. Figure
depicts facilities available with Bhilai Steel Plant for 4.0 mt production. As of now this
is the largest steel plant in India with present capacity utilization more than 100%.
Living up to the demand of the growing economy of the country, the plant produces
wide range of products. This includes Rails, Wire Rods, Plates and Merchant products.
Commitment to quality and customer satisfaction has resulted in consistent R & D
efforts culminating in development and commercialization of distinctive new grades
like SAILMA, UTS-90 etc. Bhilai Steel Plant could dream and implement the project
of long rail ( 78 meter and above ) inconsistence with it’s reputation with in-house
know-how. This was a basic demand Human resource management is exemplary in
Bhilai Steel Plant. It is worthwhile to note that Bhilai Steel Plant registered maximum
profit in 2004-05 among all public sector steel plants in spite of coal crises during first
six month and hike in coal price. The annual turn over of the company for the year
2004-05 is Rs 11389 crores with net profit margin of Rs. 4041 crores.
Bhilai Steel Plant symbolizes Indian Industrial Growth. Many laurels were bestowed
on Bhilai Steel Plant. It has been honored five times with coveted “Prime Minister’s
Trophy” as best Integrated Steel Plant of the country.
Energy Consumption:
Steel production in Bhilai Steel Plant, like any other integrated steel works, is highly
energy intensive. The gross energy consumption in the plant for the year 2004-2005 is
3688 GCal/Hr. which is approximately equivalent of 3.2 million TOE ( ton of oil
equivalent ) per year. The primary energy input for the year 2004-2005 constitute 3.76
million tons of Coking Coal, 0.24 million tons of Boiler Coal, purchased electrical
power of 203MW and 12748 kilo litres of petro-fuel.

The demand of other energy items, viz, steam, compressed air, oxygen etc. are
completely met by in-house auxiliary units. 40% of the total power demand of the

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plant is met by captive power plants including power from joint venture. Specific
energy consumption, specific power consumption and specific petro-fuel consumption
are given in figures attached here with. It may also be noted that Bhilai Steel Plant is
the only steel plant in India continuing with “Ingot Casting & Soaking Pit with
Blooming Mill” route for steel making. About 50-55% of the total steel is made
through this route. This route is energy inefficient and consumes about 0.35 – 0.4 Gcal
of energy per ton of crude steel. Even after this handicap specific energy consumption
per ton of crude steel is best among SAIL plants and Tisco shows the grit and
commitment of Bhilai collective towards energy conservation.
The annual energy bill for the company is around Rs. 2630 Crores which comprises
around 35 % of the total production cost.
ENERGY CONSERVATION TEAM STRUCTURE
Energy Conservation measures implemented during 2007-2008are given below :

1. Coal dust injection in Blast furnace –1, 5, 7


Coal dust is a substitute of COKE in Blast Furnace as a auxiliary fuel. The
replacement ratio is 1:1.2 aprox. Using coal dust in Blast furnace directly through
tuyers reduces the requirement of Coke. In Coke Ovens 1.8 gcal energy consume for
converting Coal to coke, this energy is saved.

2. VVVF drive commissioned in ID fan motor of SMS-2


The ID fan motor( 1200 kw) capacity for convertor –C was running continuously at
rated speed during process and as well as during idle time. After installation of VVVf
drive during idle period, the motor run at
42 % of the rated speed. Thereby saving of 7500 kwh/day.

3. Development of low power dedicated Ventilation system for leveler-


2 ( 75 kw by 3 kw) in Plate Mill.

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75 KW ventilation system had been installed for leveller-2 cooling system. But due to
low loading on leveller-2 it was observed that the requirement is very less.
Accordingly 75 KW system has been replaced by 3.75 kw ventilation system.

4. Coal Tar Injection in Blast Furnace


Coal Tar is a by-product of coke making process. The year when severe coal crisis was
experienced by all Indian steel plants. It was decided by Bhilai management to inject
coal tar as a measure to conserve coke consumption in Blast Furnace. Technology was
developed with in-house know how and required installation was erected in Blast
Furnace # 3. At present about 30-40 liter of coal tar is injected through tuyers of the
furnace and it is observed that the replacement ratio is about 1.4 kg of BF coke per
liter of coal tar. Encouraged by the result obtained, management has decided to
extended to Blast furnace # 2 also. Plant scale trial is going on to establish the obtained
result.

5. Modifying the field of Vertical stand and Finishing stand Screw


Down to low voltage system ( 220 V to 145 V) in Plate Mill.

The 230 V supply of Vertical & Finishing stand motor were fed through resistance.
The 230 V supply of Vertical & Finishing stand motor were fed through resistance
boxes. It was observed that actual field supply requirement is only 145 V and 75 V is
being dropped in resistance box. That is why only 145 V direct fed to field winding
without resistance box by changing incoming supply from 11 KV to 6.6 KV of CVDC
transformer.

6. Extension of Unloading bay for reducing unloading time of LSHS

The time taken for unloading a rake of LSHS fuel ( 70 wagons) was about 65 hrs , this
was due to insufficient unloading points. It was observed that if 6 no of unloading

points are increased the time for unloading can be reduced to 40 hrs. After this
modification ( in house) total steaming time was reduced .

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7. Utilization of waste Lubrication oil in Lime Kiln.


The waste lubrication oil( used) about 100 KL per year earlier was disposed at low
price . A unit is commissioned to reclaim this oil by mixing in LSHS fuel in a ratio of
1 to 1.5 % and successfully consumed in Lime Kiln with out any major effect.

8. Blast Furnace gas firing in Boiler No-6 of Power and Blowing


Station.
The Boiler No –6 of PBS was commissioned with out BF gas firing system and was
consuming coal . In Bhilai Steel Plant BF gas is available in excess and was flared in
the atmosphere , to use this gas Boiler No-6 was modified by providing Burners , and
after this about 60000 M3 /hr BF gas is able to consume in Boiler . This has saved
Boiler coal about 240 Tones per day.

Energy Conservation Plans and Targets:


The company has set up a challenging target of reducing specific energy consumption
by 2% in every successive year and to reach International Norm. In line with that,
Bhilai Steel Plant has undertaken a major programmed for investment in capacity
enhancement and introduction of energy efficient technologies. The following is the
brief outline of envisaged projects:

I. Introduction of SMS – 3 for production of steel through BOF & Concast


route

II. Introduction of Thin Slab caster

III. Introduction of Walking Beam Furnaces in Rolling Mills in


phases

IV. Phasing out of Ingot Casting & Blooming Mill route

V. Introduction of Pellet Plant

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VI. Introduction of Gas Fired Boiler

Energy Conservation is an aggregate of total working of the plant and it has to be


achieved by every one. For achieving target of energy consumption, energy bearing
indices are identified for all major shops and norms are set at the beginning of the
year. These norms have the approval of the Executive Director (Works) and all shops
are asked to adhere to these norms. The impacts of these norms are also explained to
them for their awareness. The table below gives the impact of deviation of these norms
on energy consumption per ton of crude steel Energy Conservation is an aggregate of
total working of the plant and it has to be achieved by every one. For achieving target
of energy consumption, energy bearing indices are identified for all major shops and
norms are set at the beginning of the year. These norms have the approval of the
Executive Director (Works) and all shops are asked to adhere to these norms. The
impacts of these norms are also explained to them for their awareness. The table below
gives the impact of deviation of these norms on energy consumption per ton of crude
steel.

S.No. Parameter Variation Impact on Energy


I Coke Rate + 10 Kg/THM 0.085 Gcal/tcs
II Hot Metal Rate + 10 Kg/T CS 0.052 Gcal/tcs
III Power Cons + 10 Kwh/TCS 0.03 Gcal/tcs
IV Steam Cons + 10 Kg/TCS 0.007 Gcal/tcs
V Boiler Coal + 10 Kg/TCS 0.042 Gcal/tcs
VI Oxygen + 1 M3/TCS 0.0025 Gcal/tcs

c) VISION, MISSION AND QUALITY POLICY


vision
To be a respected world class corporation and the leader in Indian steel business in
quality, productivity, profitability
and customer satisfaction

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.
CREDO

We build lasting relationships with customers based on trust and mutual benefit.
We uphold highest ethical standards in conduct of our business.
We create and nurture a culture that supports flexibility, learning and is proactive to
change.
We chart a challenging career for employees with opportunities for advancement and
rewards.
We value the opportunity and responsibility to make a meaningful difference in people's
lives.

SEVEN C”S OF COMPANY/MISSION

1] CONSISTENT QUALITY

2] COMMITTED DELIVERY

3] CUSTOMIZED PRODUCTS

4] COMPETITIVE PRICES

5] COMPLAINT SETTLEMENT

6] CONTEMPORARY PRODUCTS

7] CULTURE OF CUSTOMER SERVICES


QUALITY POLICY OF SAIL/BSP

(ISO 9001:2000 CERTIFIED)

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Quality Policy

The company making products according to ISO 9001:2000 specification. The


products of the company are every time subjected to the most stringent and
uncompromising quality control test. Being the holder of “ ISO 9001:2000 certificate,
company is authorized to issue certificate confirming ISO 9001:2000 specification.
BSP has over the years acquired a reputation for quality steel. BSP has a well-
equipped research and development centers for iron and steel (RDCIS)
at Ranchi, which helps to produce quality steel and develop new technologies for the
steel industry. Besides, it has its own in-house centre for engineering and technology.

d) PRODUCT PROFILE
Product Mix
Product Wise
Semis Blooms, Billets & Slabs
Structural’s
Crane Rails
Long Products
Bars, Rods & Rebars
Wire Rods
HR Coils, Sheets & Skelp
Plates
CR Coils & Sheets
Flat Products
GC Sheets\ GP Sheets and Coils

Tubular Products Tinplates


Electrical Steel

Pipes
Railway Products
Rails
Wheels, Axles, Wheel Sets

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Plant Wise
Bhilai Steel Plant Blooms, Billets & SlabsBeams
Channels, Angles
Crane Rails
Plates
Rails
Pig Iron, Chemicals & Fertilizers
Bokaro Steel Plant HR Coils & Sheets
Plates
CR Coils & Sheets
GP Sheets & Coils/ GC Sheets
Pig Iron, Chemicals & Fertilizers
Durgapur Steel Plant Blooms, Billets & Slabs
Joists, Channels, Angles
Bars, Rods & Rebars
Skelp
Wheels, Axles, Wheel Sets
Pig Iron, Chemicals & Fertilizers
Rourkela Steel Plant HR Coils
Plates
CR Coils & Sheets
GP Sheets/ GC Sheets
Tinplates
Electrical Steel
Pipes
Pig Iron, Chemicals & Fertilizers
Salem Steel Plant Stainless Steel

Fertilizers

Ammonium Sulphate (20.6% N)


Brand name "Raja

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Coal Chemical

Benzene (NG)
Toluene (NG & IG)
Xylene
Light Solvent Naptha
Solvent Oil
Heavy Solvent Naptha
Benzol (IG)
Still Bottom Oil
Hard, Medium, Granulated and Liquid Pitch
Extra Hard Pitch
Hot Pressed Naphthalene/ Naphthalene Flakes
Heavy Creosote Oil
Anthracene Oil
Meta Para Creosole
Light Oil
Sodium Phenolate
Drained Naphthalene Oil
Dephenolised Oil
Heavy Benzol
NG: Nitration Grade
IG: Industrial Grade

e) AREA OF OPERATION
AREA OF OPERATION IN B.S.P.
DESCRIPTION OF 2.5 MILLION TON SECTION

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This section deals with the marketing procedure and functions of non-flat
able products. These include Wire Rod Mill (WRM), Merchant Mill(MM), Rail and
Structural Mill(R&SM) and Billet and Blooming Mill(BBM).This section is heated by
Senior Manager and his subordinates. This section has the job to look after all the
stages of marketing products.
This section has to play an important role in the overall management procedure of
marketing department. It is an integrated part of the marketing department and
contributes a lot to achieve the laid target effectively.
WIRE ROD MILL:-
This unit of Bhilai Steel Plant was commissioned on 1967 with a production
capacity of 10,000 to 12,000 tons p.a. as later on it had gone for expansion with most
improve technology. Different measurement of rods i.e. plain rods, rods coiled and of
varying thickness are produced in the Wire Rod Mill. The orders are placed in every
three months, semi-annually, quarterly or as per the demand of the customers from
CMO. On this basis the product are dispatched, if not fully met revalidated to a further
period and if fulfilled then new orders are entertained.
This unit of Bhilai Steel Plant was commissioned on 1961. By 1967 this unit was
also undertaken for expansion with a target production capacity to part with 2.5 MT
section. Some of the product of this unit is engaged with viz. Rounds, Channels,
Angles, Ribbed Rods etc. Some of the major users are Indian Railways, Local
Industrial Units, Heavy Industrial Units and other concern. These products are mostly
used while rectifying the wear and tear of heavy equipments or construction of
structural in industries, The production quantity depends upon the orders placed by
CMO through DP (Dispatch Program) which displays the allotment of different
programs for each SAIL unit.
RAIL & STRUCTURAL MILL:-
This giant unit of Bhilai Steel Plant was commissioned in 1961 with 50,000
tons capacity. Later on the expansion of this unit gave an abundant production

capacity of thousand tons of rails per month. From the past many years Bhilai Steel
Plant has been the major supplier of rails, beams, channels and other heavy structural
to the Indian Railways, Export industry and other heavy industrial units. Bhilai Rails

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are in the great demand among south east nations and middle-east countries. They
have achieved high laurels excellence internationally. Since the ISO certification of
Bhilai Plates the future plans are to set up the rails on the tracks for ISO standards.

DESCRIPTION OF 4.0 MILLION SECTIONS:


This section of Marketing Department deals with the marketing
procedures of flat able products. Flat able products viz., plates of varied dimensions,
the major functions of this section is performed by CMO which assign the
programmed to his section. The programs are assigned bi-monthly, quarterly, half-
yearly or annually according to the demand. This section is a division of Marketing
Department of BSP, it is headed by Senior Manager and having a strength of 25-30

f) OWNERSHIP PATTERN
Ownership and Management
The Government of India owns about 86% of SAIL's/BSP equity and retains voting
control of the Company. However, SAIL, by virtue of its ‘Navratna’ status, enjoys
significant operational and financial autonomy
OWNER : Government of INDIA & Share holders
CHAIRMAN : S.K.ROONGTA
MANAGING DIRECOR : R.RAMARAJU
BSP is a government limited company and is registered under company’s act 1956.
There is board of directors, Mr. R.RAMARAJU is the managing director and rest of
directors of STEEL AUTHORITY OF INDIA LTD. Mr. R.RAMARAJU the
managing director is there to look after the day to day operations of the company.

Shareholding pattern (%)


Government 85.8
Institutional 8.2
Public 4.3
Others 1.6

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g) COMPETITORS INFORMATION

BSP helps keep India's ship of industry afloat. Steel Authority of India Limited
(SAIL)/BSP is among India's biggest steelmaker. The company's main steel products
include flat products (coils, plates, and sheets), structural (angles, bars, and rods), rail
products (high conductivity rails, light rails, and heavy rails), and tubular products
(welded pipes). In early 2006 SAIL merged with subsidiary Indian Iron and Steel.
Though it controls a third of Indian steel production, SAIL/BSP is no longer the
country's largest steel maker after Tata Steel's takeover of Corus went through. It hopes
to raise its production from 13 million tons to more than 20 million by 2012.

Competitors of SAIL/BSP

1] Arcelor Mittal

2] JFE Holdings

3] Tata Steel

STEEL AUTHORITY OF INDIA is the second largest steel maker in India. With an
annual production of 13.5 million metric tons, SAIL is the 16th largest steel producer
in the world. According to a recent survey, SAIL/BSP is one of India's fastest growing
Public Sector Units.

h) INFRASTRUCTURAL FACILITIES

. The company works as per Factories act, 1948. It provides the following
infrastructural facilities.

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Machines and equipments:-

I. SMS – 3 for production of steel through BOF & Concast route

II Thin Slab caster

III Walking Beam Furnaces in Rolling Mills in phases

IV. Phasing out of Ingot Casting & Blooming Mill route

V. Pellet Plant

VI. Gas Fired Boiler

Canteen
Well arranged canteen provided by the company. The canteen is run on
contract basis, as per the terms of the contracts.

Ventilation and temperature


Ventilation of the factory is good and there is circulation of fresh air.
Temperature- as all the machines used are of power machines the temperature is
maintained especially in pre- fusing section and ironing section. There are measuring
instruments that is used. ie: use of room thermometer that measured the temperature of
room.
Dust and Fume
Employees are provided with masks and given people who are working in parts
section and cutting section. The dust, that is produced while stitching and cutting

and cutting of the fabric as is likely to be injurious to the workers, so effective


measures and prevention of inhalation is taken care by providing them with masks and
also exhaust fans are placed.
.

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i) ACHIEVEMENT/AWARDS

Glimpse of some of the awards and achievement bagged by SAIL/BSP and its
employees:

1] Bhilai Steel Plant bagged the most prestigious “Prime Minister Trophy award 2004-
05” for becoming the best among the integrated steel plant. Out of 13 PMs Trophy
awarded so far Bhilai steel plant has bagged it 7 times.

2] SAIL was featured in the 2005 list of FORBES GLOBAL 2000 companies at
position 764.

3] 5 employees from Rail& Structural mill bagged Prime Ministers shram Ratna – The
highest shram award. Out of total 15 awarded so far in the country 13 awardees are
from Bhilai Steel Plant.

4] Golden peacock award for the most innovative product was awarded to Bhilai Steel
Plant in the 16th world congress on total quality [WCTQ 2006]

5] Bhilai Steel Plant was declared winner for HR Excellent Award by CLL,
Chattisgarh

6] Ispat suraksha Puraskar for the year 2005 award to BSP by JCSSI

7] BSP a winner of Gold Award in metal sector for outstanding achievement in


environment management for the year 2004-05, sponsored by greentech foundation,
new Delhi.

j) WORK FLOW MODEL [END TO END]

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SCRAP IRON ORE

PELLET PLANT

SINTER PLANT
Coke
ovens DIRECT
SMELING REDUCTION
BASIC OXYGEN FURNACE REDUCTION
Blast
furnace

ELECTRIC
ARC
FURNACE
INGOT

CONTINOUS CASTING

ROLLING MILL

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k) FUTURE GROWTH AND PROSPECTUS


BHILAI STEEL PLANT - Into the Future

Modernization and Expansion Plan of SAIL/BSP Corporate Plan, 2012

Corporate Plan, 2012 (CP12) was formulated in 2004 for 4 integrated steel plants for
increase in Hot Metal production to 20 Mt by 2012. After merger of IISCO in feb’06,
the Hot Metal production Plan was revised to 22.5 Mt by 2012. Expansion of Special
Steel Plants was also included. Besides capacity enhancement, the plan also addresses
the need of SAIL Plants towards eliminating technological obsolescence, energy
savings, enriching product mix, pollution control, developing mines & collieries to
meet higher requirement of key raw materials, introduce customer centric processes
and have matching infrastructure facilities in the Plant to support higher production
volumes. Investment to the tune of Rs 34,982 crore was envisaged under the Corporate
Plan. It was envisaged to take up the Projects in segregated manner based on the
Techno-economic viability of each project.

Objective of CP12
• 100% production of steel through Basic Oxygen Furnace (BOF) route
• 100% processing of steel through continuous casting
• Value addition by reduction of semi finished steel
• Auxiliary fuel injection system in all the Blast Furnaces
• State-of-art process control computerization/ automation
• State-of-art online testing and quality control
• Energy saving schemes
• Secondary refining
• Adherence to environment norms

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Production (Mtpa)

Item 2006-07 CP-12


(Actual)
Hot Metal 13.2 22.5
Crude Steel 12.5 21.6
Saleable Steel 11.3 20.2

Areas-Wise Investment Planned (Rs. crore)

Plant Sustenance Quality Capacity Total


BSP 2120 880 6000 9000
DSP 772 545 1523 2840
RSP 1199 832 2559 4590
BSL 2187 833 3320 6340
ASP 306 154 - 460
SSP 18 - 1248 1266
VISL 239 60 299
IPS 513 - 7504 8017
RMD - - 2170 2170
Total 7354 3304 24324 34982
% 21 9 70 100

Expansion Plan, 2010

The Corporate Plan, 2012 was reviewed by Humble Minister of Steel in Jul’06,
wherein it was decided to take up the Expansion of Integrated Steel Plants and Special
Steel Plant in one go based on Composite Project Feasibility Report (CPFR). By that
time Expansion of IISCO Steel Plant and Salem Steel Plant was already approved “in-
principle” based on the Techno-Economic Feasibility Report (TEFR) of MECON. For
the Expansion of other four integrated Steel Plants, MECON was assigned the job of
Preparation of CPFR in Aug’06. The CPFR for the four integrated steel plants was
prepared by MECON. ‘In principle’ approval has been accorded by SAIL Board for
the expansion plans of IISCO Steel Plant (Jul’06), Salem Steel Plant (Jun’06), Bokaro
Steel Plant (Dec’06), Bhilai Steel Plant (Apr’07), Rourkela Steel Plant (May’07) and
Durgapur Steel Plant (Jul’07).

Item 2006-07 Capacity as per


(Actual) Expansion Plans

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2010
Hot Metal 14.61 26.18
Crude Steel 13.51 24.59
Saleable Steel 12.58 23.13

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MCKENSY’S 7S FRAME WORK

It’s all very well devising a strategy, but you have to be able to
implement it if it’s to do any good. The seven S framework first appeared in “The Art
of Japanese Management” by Richard Pascal and Anthony Athos in 1981. They had
been looking at how Japanese industry had been so successful, at around the same time
that Tom Peters and Robert Waterman were exploring what made a company excellent.
The seven S model was born at a meeting of the four authors in 1978. It went on to
appear in “In search of excellence” by Peters and Waterman, and was taken up as a
basic tool by the global management consultancy McKensy”s: it’s sometimes known
as the McKensy”s 7S model

McKensy’s 7S frame work with special reference to:- Steel Authority of India
Limited/BHILAI STEEL PLANT

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BHILAI STEEL PLANT

1] STRUCTURE :-

Managing
Director

Projects Works P&A Mat .Mgt F& M&H M&S Info. Vigilance Com
A S Tech mn

ED ED ED ED ED

Ppe& Project
bedb HRD Pers Town DIR GM GM ACV
service I/C O

GM GM s

COC
GM GM GM GM

I&A CO STE Safety Plate Mil quality Refr. service M&U


IRO P
&CC EL &Fs Mill l- s
N E
D
GM G &
GM GM GM G GM E
GM M GM GM GM M I/C GM
I/C
I/C

SM SMS
S1 2

GM GM PPC Traffic
Sps& Bfs Mines
ohp

GM GM GM BBM RSM MM&WR GM


I/C GM

GM GM GM

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BHILAI STEEL PLANT

There are 8 main departments in SAIL/BSP they are:-


1. Finance Department.
2. Human resource Department.
3. Marketing & strategic planning Department.
4. Production Department.
5. Research &Development Department.
6. Quality control Department.
7. Purchase and store Department.
8. Hospitals.

There are ten Hospital of Bhilai steel plant in Bhilai city only. Mainly this broad
structure can be classified into 4 main categories these are finance, marketing,
production human resource and so on. Under structure the Organizations hierarchy
level will be stated The different departments that are coming in that organization
which all heads are coming under each management and every thing which is needed
for the effective functioning of an organization will be there in the structure of the
organization It will be stated in that to whom all are coming under the board of the
directors and under them who all are coming functions of each of the department etc

Finance department:-
Finance is regarded as the lifeblood of business. The basic objective of financial
management is maximizing the profit of the firm, without profit no firm can exist.
Thus finance has such importance in every firm. The funds should be used properly
and proper accounts should be maintained. The efficiency of production and marketing
function of the enterprises is preformed by the finance division. Thus every business
unit should have a sound financial management

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BHILAI STEEL PLANT

FINANCE DEPARMENT:-

Asst. General Manager


(Finance)

Asst. Manager

Executives

Office Assistance

The BSP follows a centralized Accounting system. It’s having its own policies. A
part of profit is used as working capital. Finance manager is the head of this
department. BSP maintains proper books of account every year

1) Planning of funds:

Careful estimation of total funds require by the manager is called planning of


funds. It can be either fixed or current asset or also working capital requirement.
The working capital estimation is made by deep analysis as the BSP which deals
with the steel production which needs more capital.

2)Allocation of Funds

Not only planning of funds but also to provide the funds to the proper place at
proper time are also an important task to be done by the financial manager the
financial manager first studies the requirement and then distributes funds.

It spends most of the amount for the improvement of the company’s services and
also for fixed assets like machinery.

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BHILAI STEEL PLANT

3) Investment Decisions

The decision on the investment whether it should be of capital or assets comprises


the investment decision. The investment in capital asset is done after a careful
study over the profitability, safety liquidity and solvency factor of that asset.

4) Recording of Information

All the transactions are recorded in the journal and posted to ledger. Each pin of
transaction is recorded that takes places as it helps in better control and effective
supervision of funds.

5) Preparation of Financial Statements and Evaluation

The financial department will prepare the year ending financial statement to check
the profit and loss of the dairy of that particular year. It also evaluates the post
performance and the present and takes the corrective messages if required.BSP
submits its annual reports to the concerned departments regarding its financial
strengths and weakness of the firm by properly establishing relationship between
the items of balance sheets, profit and loss account.

MARKETING &STRATEGIC DRPARTMENT:-

Marketing &strategic planning department of BSP acts as an interface between


plant & CMO for coordinating marketing activities with CMO for sale of primary
products. A part from this it carries out direct sale of secondary products &By-
products generated in plant.

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MARKETING&STRATEGIC DEPARTMENT STRACTURE

Key activities of
M&S deptt.

Co-ordination Direct sale of


with CMO/ITD secondary/
for sale of by products
prime product

Secondary
Sales Order l&S items
planning mgt Granu,
Key slag,
Complaint Coal
a/c misc.
handling chemical
mgt items
fertilizers

CENTRAL MARKETING ORGANIZATION

The ISO: 9001:2000 certified central marketing organization (CMO) is India


largest industrial marketing set-up that markets carbon steel produced by the 4
integrated steel plant of SAIL. Headquartered in Kolkata, it transact business
through its network of 34 branch sales offices spread across 4 regions, 25
warehouses equipped with mechanized handling system, 11 customer contact
offices and 16 consignment agents. CMO domestic marketing effort is
supplemented by its ever-widening network of authorized and rural dealers who
meet the demands of the smallest customers in the remotest corners of the

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country. A strong IT support system enables real time network connectivity within
the entire CMO network.

Extensive customer contact, product and segment specification, close monitoring


of order servicing and feedback analysis through the Customer Satisfaction index
are established norms at CMO. The customer – friendly approach of CMO is
backed by practical after sales service. Through the process of key Account
Management, CMO provides single window service to key customers across the
country for every business transaction from enquiry to order booking, order
tracking to delivery, and even consultancy and after sales service.

CMO’s international Trade division (ITD) in New Delhi manages exports of iron
and steel products of SAIL’s five main integrated steel plants and maintains close
liaison with buyers abroad. ITD has successfully established SAIL’s reputation as
a producer of quality steel products and a consistent supplier across the five
continents. Among the notable destination are China. Korea, USA, Canada,
Philippines, Indonesia, Malaysia, Saudi Arabia, Iran, Europe and Singapore, as
well as neighboring countries like Sri Lanka, Myanmar, Nepal and Bangladesh.

The critical function of ensuring efficient and proper dispatch of export materials
and timely import of raw materials to maintain the pace of production of the SAIL
plants is performed by CMO’s Transport and Shipping Division (T&S).
Headquartered at Kolkata, T&S has branch officers at Haidia, paradip and Vizag
ports.

Both ID and T&S are accredited with ISO: 9002 certification.

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HUMAN RESOURCE DEPARTMENT:

HR Manager

Personnel officer Legal Officer

Executives

Dept. Staff

The main functions of Human Resource Department are:


 Selection

Select the appropriate Human Resources in the organization


 Recruitment

Search for prospective employees and stimulating them to apply for job in
the organization. The company may choose internal and external sources for the
recruitment function.
 Training and Development

The company provides quarterly or yearly training and development


programme to the employees of the organization. This program will be helpful
for:
 Increasing productivity

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BHILAI STEEL PLANT

 Increasing morale of the employees

 Increasing organizational stability

The company provides both on the job and off the job training programme.

PRODUCTION DEPARTMENT

Production means creation of utilities and covers all the activities


of procurement, allocation and utilization of resources. Marketing research enable the
utilization of resources. Marketing research enables the enterprise to determine the
nature and character of output of utilities.The production of a business is concerned
with the creation of a product and services required to satisfying customer. It operates
primarily to satisfy customer demands particularly relating to quality, quantity, price
and above all timing of delivery as schedule in the orders. It must permit production
activities to operate in an economical and efficient manner because cost of production
is vital factor in facing market competition and in ensuring normal profit or return on
the investment.
PRODUCTION PROCESS:_

RAW MATERIALS
Fe scraps, Fe ore, Ferro silicon, Bauxite, Fluorspar, Coke powder, Ferro
Manganese, graphite electrodes, etc are the main raw materials used for the
construction steels.

1. Coal dust injection in Blast furnace –1, 5, 7


Coal dust is a substitute of COKE in Blast Furnace as a auxiliary fuel. The
replacement ratio is 1:1.2 aprox. Using coal dust in Blast furnace directly through
tuyers reduces the requirement of Coke. In Coke Ovens 1.8 gcal energy consume for
converting Coal to coke, this energy is saved.

2. VVVF drive commissioned in ID fan motor of SMS-2

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The ID fan motor( 1200 kw) capacity for convertor –C was running continuously at
rated speed during process and as well as during idle time. After installation of VVVf
drive during idle period, the motor run at
42 % of the rated speed. Thereby saving of 7500 kwh/day.

3. Development of low power dedicated Ventilation system for leveler-


2 ( 75 kw by 3 kw) in Plate Mill.
75 KW ventilation system had been installed for leveller-2 cooling system. But due to
low loading on leveller-2 it was observed that the requirement is very less.
Accordingly 75 KW system has been replaced by 3.75 kw ventilation system.

4. Coal Tar Injection in Blast Furnace


Coal Tar is a by-product of coke making process. The year when severe coal crisis was
experienced by all Indian steel plants. It was decided by Bhilai management to inject
coal tar as a measure to conserve coke consumption in Blast Furnace. Technology was
developed with in-house know how and required installation was erected in Blast
Furnace # 3. At present about 30-40 liter of coal tar is injected through tuyers of the
furnace and it is observed that the replacement ratio is about 1.4 kg of BF coke per
liter of coal tar. Encouraged by the result obtained, management has decided to
extended to Blast furnace # 2 also. Plant scale trial is going on to establish the obtained
result.

5. Modifying the field of Vertical stand and Finishing stand Screw


Down to low voltage system ( 220 V to 145 V) in Plate Mill.
The 230 V supply of Vertical & Finishing stand motor were fed through resistance.
The 230 V supply of Vertical & Finishing stand motor were fed through resistance
boxes. It was observed that actual field supply requirement is only 145 V and 75 V is
being dropped in resistance box. That is why only 145 V direct fed to field winding

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BHILAI STEEL PLANT

without resistance box by changing incoming supply from 11 KV to 6.6 KV of CVDC


transformer.

6. Extension of Unloading bay for reducing unloading time of LSHS


The time taken for unloading a rake of LSHS fuel ( 70 wagons) was about 65 hrs , this
was due to insufficient unloading points. It was observed that if 6 no of unloading
points are increased the time for unloading can be reduced to 40 hrs. After this
modification ( in house) total steaming time was reduced .

7. Utilization of waste Lubrication oil in Lime Kiln.


The waste lubrication oil( used) about 100 KL per year earlier was disposed at low
price . A unit is commissioned to reclaim this oil by mixing in LSHS fuel in a ratio of
1 to 1.5 % and successfully consumed in Lime Kiln with out any major effect.

8. Blast Furnace gas firing in Boiler No-6 of Power and Blowing


Station.
The Boiler No –6 of PBS was commissioned with out BF gas firing system and was
consuming coal . In Bhilai Steel Plant BF gas is available in excess and was flared in
the atmosphere , to use this gas Boiler No-6 was modified by providing Burners , and
after this about 60000 M3 /hr BF gas is able to consume in Boiler . This has saved
Boiler coal about 240 Tones per day.
SKILL

A skill is the ability, knowledge and understanding to accomplish a task. Skills may
be defined as what the company does best that distinctive capacities and competencies
that reside in the organization.

The following procedure is performed in particular for training of skill:-

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BHILAI STEEL PLANT

Technically qualified hands are appointed as apprentice trainees. They will get
a preference in future appointment when vacancy arises. Training may be with or
without wages and the training period is limited to two years.

Training workers are classified in to four stages, they are:-


 Trainee “A”. First six months period with allowance of per day or per month
basis.
 Trainee “B”. After six month period with allowance of per day or per month
basis.
 Trainee “C”. Trainee who is satisfactory completed trainee-B.the trainee will
trained another six month with allowance of per day or per month basis.
 Trainee “D”. Trainee who satisfactory completed trainee-C. That trainee will
be trained another three month with allowance of per day or per month basis.

STYLE
Bhilai steel plant has a top down styles of functioning. Decisions are taken by
the top management and conveyed to the lower level employees. Some decision
makings are participative others are authoritative. Major decisions are taken by the
higher authority in consultation with the lower level employees. Most of the decisions
are participative in nature.

STRATEGY

The strategy in the 7s framework includes purposes, missions, objectives, goals and
Major action plans and policies of the company. Through out the past decade, the
corporate world has given close attention to the interplay between strategy and
structure. Certainly clear ideas about the strategy make the job structural design more

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BHILAI STEEL PLANT

rational. By “strategy” we mean those actions that a company plans in response tour
anticipation to or changes in its external environment-its consumers, its competitors.

.Strategies applied by BSP:-


The main aim of the company will be producing good quality of Iron and steel
product to the public as well as providing more number of employment and increase
the standard of living of the people.

The Bhilai steel plant business strategies are based of three core values; they are
operational excellence, Customer’s focus and product leadership.

The business strategy emphasizes the following:-


1. Increase their market shares.
2. Reduced cost of production.
3. Increase company performance.
4. Produce always quality product.
5. To meet social responsibilities.
6. Provide employment opportunity to the people of the area.
7. Meet the national and regional demand of iron and steel products.
8. Reduce the import of iron & steel from the foreign market.

The key to succeed in this environment is to develop that acumen to perceive these
challenges as opportunities. The opportunities for leadership always come in disguise
of challenges and the path to future is full of them BSP”s leadership has evolved a
multipronged strategy to excel in face of multitude of these challenges right from
growth oriented capacity investment, an aggressive marketing plan, thrust on new
products development, investment in raw material projects to strategic social
responsibility measures

. SYSTEM

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BSP follows a clearly well defined system. Management information system is identifying
the problems in between the departments and managing the problem with interrelated
process. It contributes to the organizations effectiveness and efficiency in achieving its
objectives. All the departments in the company have their own information systems and are
fully computerized. Each and every department has its own systems and the company has a
common management information system.
Performance Appraisal System:
Performances of the employees are appraised on the basis of their commitment
toward the work, their regular attendance and the quality of work done. The company
is following a performance appraisal process:-

• Establishing standards.
• Communicating standards to the employees.
• Measuring actual performance.
• Comparing actual with standards.
• Discussing reports with employees.
.
QUALITY CONTRAL SYSTEM:-

Each department is headed and its activities were controlled by its departmental heads.
Well equipped quality control department is maintained. Here the quality of the
product is strictly checked and ensured as per ISO 9001:2000 specification

STAFF

Staffs are the most important input in any type of organization. The success
and failure of any organization depends on both labor and staffs Qualitative analyze is
most important in the selection of staffs. If the staff is an efficient person, he is a
valuable asset to the organization.

STEEL AUTHORITY OF INDIA is the second largest steel maker in India. It is a


public sector undertaking wholly owned by Government of India and acts like an
operating company. Incorporated on December 2, 1972, BSP has more than 60000
employees

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BHILAI STEEL PLANT

The Personnel Department of BSP is under General Administration. The total


number of employee in BSP is 2007, out of which 12000 is managerial category, this
include top, middle and operational level managers. And 48000 are factory employees
and office staff. 10% of the total strength is female employees.

The total numbers of employees are categorized in to as


1. Managerial Category:- These are people who have the ultimate power to take any
sort of decision here mainly planning or creating strategies for the middle and lower
grade of employees they are mostly engineers and MBA’s they mainly guide others
and takes correct decisions.
2. Staff Category: -These are people of middle levels and mostly they are clerks and
office staffs. They are mainly handling office works according to the work allotted to
them by the upper authorities.
3. Workmen Category:- These are the people whom perform all the work required in a
plant to produce iron & steel and as peon they are mainly categorize into 3 part i.e.

Grade 2 workers:- They are mainly operators of heavy machineries


Attender Grade/unskilled workers:- they are mainly unskilled workers they are
mainly called peon.
Grade 1 workers:-They are mainly very lower level workers mostly do very hard
kind of jobs like cleaning and shifting raw materials from one place to another.

SHARED VALUE
The basic philosophy of Bhilai steel plant is to achieve business excellence and to
create and enhance the value for its share holders, Customers, Employees and
Business Associates and thereby to make a significant contribution to the Economy.
The company endeavors to achieve the highest level of transparency, accountability,
integrity and responsibility by following the best practices in Industry.

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SWOT ANALYSIS OF THE COMPANY

1] STRENGTH:- The main strength are:-


 The company has got a monopoly market condition for it in manufacturing of
steel in Indian market.
 The strength of the company (Bhilai Steel Plant) is its iron mines situated near
to the plants which reduce transportation cost and help to increase the profit of
BSP.
 The another strength of company is due to its central government holding so
its primary/ major customer is the government itself like Indian railways and
so on which gives large orders for its requirements.

2] WEAKNESS:- The main weakness are:-


 As a central government organization as BSP cannot fix a price of its own as
there are pressure from the government.
 The other weakness is some times BSP is not able to fulfill the rising supply as
the demand exceeds production capacities.

3] OPPORTUNITIES:- The main opportunities are:-


 As demand for the steel in the local market as well as in international market is
increasing day by day
 Manufactures are less and demand is on the rise.

4] THREATS:- .The main threats are:-

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BHILAI STEEL PLANT

Non availability of coke in the domestic market which is considered as a raw


material in the manufacturing of iron and steel products as it is mainly
imported from Australia, USA and Middle East due to which price of steel
increases.

Summary of the annual report

ANALYSIS OF ANNUAL REPORT – 2OO5, 06, 07

BSE Code 500113


NSE Code SAIL
Bloomberg Code SAIL@IN
Market Cap Rs243.7bn
CMP Rs59
52week H/L 59/21
Face Value Rs10

  Bhilai Steel Plant (BSP) - Chhattisgarh


BSP is India’s sole producer of rails and heavy steel plates and a major producer of
Structural. With an annual production capacity of 3.1mn tons of saleable steel, the
Plant also specializes in other products such as wire rods and merchant products

Product (tpa)

Semis
553,000
Rails and Heavy structural
750,000
Merchant Products (Angles, Channels, Round & TMT bars)
500,000
Wire rods (TMT, Plain & Ribbed) 400,000
Plates (up to 3,600mm)
950,000

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BHILAI STEEL PLANT

Total saleable steel


3,153,000

Share Price Chart

Summary of Annual Report:-


The Company has earned a net profit of Rs.22426 million for the financial year
2006-2007.
Net sales of the company have been increased by 44603 million i.e. by 26.49%
during the year.
Share capital had shown no changes from the previous year.
Reserves of the company have been decreased by 43.47% from the previous
year.
 Net worth has increased by25125 million from the previous year.
Loan and funds has decreased by 32.7%
Total Fixed assets has been reduced by Rs 8610 million i.e. by 5.98%
Total Current assets has been increased by Rs 9106 million i.e. by 12.48%
Total current liabilities has been increased by Rs 16185 i.e. by 22.12%

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BHILAI STEEL PLANT

LEARNING EXPERIENCE

This is a public sector organization which comes under the supervision of


STEEL AUTHORITY OF INDIA LTD. It’s really a good experience in my life time,
where I learnt many things through this inplant training.

Four weeks in plant training at Bhilai Steel Plant gave me an opportunity to


know about the industrial world. In the company I learned about how the management
theories and concept applied in an organization. I saw how few managers managed a
large number of employees and machines to run the company with a profit. More over
the in plant training was a good exposure for me to the working conditions of the
organization. Another important aspect which I noticed in the company was regarding
the discipline followed in the office. ‘

I came to know practically how an organization works in each department.


And I learnt how various products are produced like Blooms, Billets& slabs beams,
channels, angles, plates and rail tracks for producing these .There are different types of
machineries being used within the production department. For operating different
machines different skills are necessary. From the production department I came to
know the need of training. The training is an unavoidable part to perform from the side
of that of the new workers.

I come to know how the marketing department of BHILAI STEEL PLANT


works and how sales planning, order management& complaint handling are done. I
come to know how central marketing organization (CMO) helps BSP in their
marketing activities.

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BHILAI STEEL PLANT

I learnt my things where we can improve our knowledge for our career and to build
good basis on organization exposure.

BIBLIOGRAPHY

1] BSP on the web:- www.SAIL.CO.IN

2] www.google.com

3] MAGAZINES:- Related to BSP & company report

4] Various books of managements

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BHILAI STEEL PLANT

ANNEXURE

PROFIT& LOSS A/C FOR THE YEAR ENDING 2006&2007

Period to FY06 FY07


(Rs mn) (12) (12)

Net Sales 168365 212968


Operating expenses (154,601) (174,902)
Operating profit 13,765 38,066
Other income 5,885 6,467
PBIDT 19,650 44,533
Interest (13,340) (8,994)
Depreciation (11,467) (11,226)

Adjustments for Items 2,139


capitalized & self 2,316
consumption
Profit before tax (PBT) (3,018) 26,629

Tax 0 (1185)
Profit after tax (PAT) (3,018)
25444
Extraordinary / prior period (25) (323)
items
Adjusted profit after tax (3044) 25121
(APAT)

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BHILAI STEEL PLANT

Balance sheet

Period FY06 FY07


(Rs mn) (12) (12)
Sources
Share Capital 41,304 41,304
Reserves (16,052) 9,073
Net Worth 25,252 50,377
Loan Funds 129,279 86,888
Total 154,532 137,264
Uses
Gross Block 275,346 277,127
Accd Depreciation (134,988) (145,589)
Net Block 140,359 131,539
Capital WIP 3613 3,822
Total Fixed Assets 143,971 135,361
Investments 5,432 5,432
Total Current Assets 72,907 82,013
Total Current Liabilities (73,141) (89,326)
Net Working Capital) (234 (7,313)
Miscellaneous expenditure 5,363 3,785
Total 154,532 137,264

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