Intrnship Report On Kalyani Steels LTD

Organization study
EXECUTIVE SUMMARY
M/s Kalyani Steels Limited (Pig Iron Division Siruguppa) are running a pig iron
industry situated at Honnarhalli village, Siruguppa taluk, Bellary district. Originally,
this industry was established during November 1994 by M/s Uni-Metal Is pat Ltd and
since 01-11-1997 it was closed. On 23-11-2004, this industry was sold to M/s Shree
Ram Electro cast Pvt. Ltd. Subsequently, on 21-04-2005 the industry was leased to M/s
Kalyani Steels Limited (KSL) and since then the industry is running continuously. The
industry has an installed capacity of 90000 TPA pig iron. However, the Consent for
Operation from KSPCB was obtained for the production of 60 000 TPA pig iron. M/s
Kalyani Steel Limited is an Indian company with worldwide refutation in steel and
alloy steel manufacture. Considering huge demand in the country, the company has
proposed to enhance the pig iron production capacity of the industry from 60 000 TPA
to 120 000 TPA. The production capacity will be enhanced mainly by full utilization of
the existing surplus plant capacity and up gradation of process technology. The
expansion does not involve procurement of additional land or construction of additional
buildings. The capital investment (Gross Block) of the industry for exist capacity is Rs.
2640 Lakhs. Additional investment needed for enhancement of capacity is about Rs. 60
Lakhs.
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Govt. R.C. College of Commerce & Management
Organization study
TITLE OF THE STUDY:-
An Organization study at KALYANI STEELS LTD, HONNARHALLI,

SIRUGUPPA (TQ), BELLARY (DST).
INTROUCTION OF THE STUDY
Practical exposure
It gives a exposure to researcher. It nurtures us to what is going on real corporate and

gives a firsthand experience in real corporate world.
Industry Exposure
 It exposure the student to know how the industry work.

 It also helps to understand function of each department.
Presentation Skills
 Project helps in improving the presentation student.

 It helps the student improve their confidence and also their communication skills.
Field work
It gives the opportunity to go the field to learn and collect data and learn about
organization.
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Organization study
OBJECTIVES OF THE STUDY:-
 To gain the first had practical knowledge of the overall functions of the
organization in terms of various functional departments.
 To learn about the present situation and performing of the company.
 To relate the classroom theories practically and analyze them to have a view of
problems faced by the organization and to help them by suggestions to
understand the problems of various functional departments of the organizations.
 To satisfy the requirements for the partial fulfillment of the post Graduate degree
of master of business administration as per the syllabus of Bangalore University.
SCOPE OF THE STUDY:-
 Useful to students to know the working setup in the organization.
 The study will help us to know the overall functioning of the organization in
detail.
 It also provides a wide scope to improve the knowledge of the study undertaking
the project in practical aspect.
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Organization study
METHODOLOGY OF STUDY:-
The required information and data was assimilated through two sources:
PRIMARY DATA:-
 By observing the various departments of the organization.
 By interacting with various employees working in the company (interview).
SECONDARY DATA:-
 From the company manual.
 From the journals and management books.
 Brochures and records of the organization.
 Internet.
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Organization study
LIMITATIONS OF THE STUDY:-
 The study is for a short duration and hence all the aspects of all the departments
were not covered.
 The study is limited to the organizational structure and brief details of all the
departments. Technical details are not covered, only a brief outline available from
the secondary data is reported.
 There has been limited access to the annual reports of the company.
 It is my sincere hope that in spite of all limitations, the reader finds this report
comprehensive, interesting and informative. I hope that this report serves the
purpose efficiently and meaningfully for which it has been intended.
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Organization study
INDUSTRY PROFILE:-
India is gifted with large quantity of iron ore with high Ferrous content, which
is the crucial raw material for producing the steel. Hence India is one of the largest
producers of steel in the world.
With the help of liberalization, globalization of economy in the process, there

is a scope for economic development, which means there will be focus on
infrastructure. This will lead to considerable demand for steel. As its main applications
are in the construction, engineering and automobile sectors, which are the key elements
in building infrastructure steel in universal intermediate and has very strong forward
and backward linkages hence steel industry has become one of the core sector of the
economy.
Though India one of the large steel producers. It has low percepts
consumption of steel in comparison with order developing and developed countries. As
steel is on the rise we can expect good rise in consumption.
India is fortunate in having intensive iron ore deposits with reserves estimated
at 10.3 billion which is more than 1/4th of the world reserves. Further the average iron
ore content of Indian ore is above 60% in India, the iron ore reserves are mainly found
in the states Orissa, Karnataka, Bihar, MP, Goa, A.P., Rajasthan and sum parts of
western Maharashtra.
When we think of the Industry steel , the first thing that comes in to mind us
pig iron. This is because of its name. To put in to simple words, when metal from blast
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Organization study
furnace is paired in to Moulds and solidifies it assumes a shape which resembles the
back of a pig. Hence name pig iron.
GLOBAL SCENARIO OF PIG IRON:-
The demand for the international has a sharp rise, the total production of pig
iron. It is estimated at 500 mt. Developed nation accounts for 45% of the total
production seeing the potential demand many mills in USA such as a Nucor, Norigstar,
Steel and Max steel are switching over to pig iron production.
INDIAN STEEL SCENARIO:-
The Indian steel industry's onward journey in the recent times has been a
cause of great pride to all of us. The last two years have seen the deregulated Indian
steel industry performing at its peak level in almost all spheres. Steel production went
up by 8 per cent to reach a level of 33 million tons in 2005-06 from 32 million tons
recorded a year before. The domestic demand for steel also registered a growth rate of 6
per cent and grew from 27 million tons in 2005-06 to 29 million tons in 2005-06. The
most spectacular achievement has, however, been recorded in export performance. The
Exports of finished steel from India increased to a modern and globally-integrated
industry in an astonishingly short span Indian steel industry's onward journey in the
recent times has been the a cause of great pride to by 37 per cent and from 2.7 million
tons to 3.7 million/tons.
In addition, significant improvement was noted in the exports of semi-finished steel,

stainless steel and pig iron. All these favorable trends have been reflected in the
improved profitability of the major steel makers in both the public and the private
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Organization study
sectors. The biggest success story has been that of TISCO, which has recorded an
increase of 391 per cent in its profits during this fiscal year compared to the previous y
ESSAR's balance-sheet has been in the black after a long time, while other major
steel makers have reduced their losses significantly. The fact that such an improvement
has come at a time of intense global competition and a worrisome proliferation of non-
tariff barriers in the developed world, speaks volumes about the resilience, the
innovativeness and, above all, the competitive spirit of the Indian exporters of steel. The
dexterity, with which the Indian exporters diversified their destination markets,
modified the composition of their export basket to suit the changing global demand
profile, affected sizable reduction in production costs and adoption of state-of-the-art
technologies provides sample testimony to the maturity of this industry.
From a highly protected inward-looking industry of .the pre-liberalization years

it has matured into a modern and globally-integrated industry in an astonishingly short
span of time.
GROWTH TREND OF PIG IRON SECTOR IN INDIA:-
Before liberalization the pig iron industry was monopolized by the integral
steel plants to utilize the liberalization policy initiated by the Government. Decline the
pig iron production and paved the way of helping the ISP’s be utilize pig iron for
making steel to gain value addition.
The integrated steel plant (ISP), is the major supplier of pig iron. Public sector (ISP)
Contributes up to 90% of the pig iron supply. According to the steel ministry report
demand for pig iron is estimated to increase by a whopping 37% over next 8 years.
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Organization study
Demand & availability of pig iron (units 000)
Years Demand Availability

1996-97 2400 3224
1997-98 2900 3469
1998-99 2700 3733
1999-00 2900 4016
2000-01 3100 4322
2001-02 3300 4650
2002-03 3600 4900
2003-04 3800 5750
2004-05 4100 5233
2005-06 4400 5474
6,000
5,000
4,000
3,000
Demand
2,000
Availability
1,000
0
1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005-
97 98 99 00 01 02 03 04 05 06
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Organization study
Pig iron is the basic input for making iron casting which finds its application
in steel industry & other sectors of the economy. It can also be used in the change
mix of the electrical are furnaces (EAFs) as a partial substitute of melting scrap. Pig
iron mainly classified into tow glades.
♦ Basic glade (which is used for making steel/)

♦ Foundry glade (which is used of manufacturing iron casting)
♦ S.g glade (which is used of manufacturing special steel)
ROLE:-
In the changed policy environment based on the tenets of economic

liberalization and global integration, the role of the Ministry of Steel has also changed
significantly. In the post-deregulation years, the Ministry has seen a significant
expansion in its role as a nodal agency for facilitating the process of transformation of
this pioneering Indian industry with a history dating back to the beginning of the last
century.
The Ministry of Steel has directed its efforts towards fostering the growth of
this industry based on the principles of competitiveness and economic efficiency. At the
same time, much of its efforts have also been directed at curbing unfair competition
from domestic and overseas sources. Similarly, it has also made efforts to help the
industry in overcoming the structural rigidities, the scarcities of essential inputs,
infrastructure-related constraints and other market-distorting forces commonly
experienced by the developing countries in the course of industrialization
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Organization study
COMPANY PROFILE
KALYANI STEELS LTD

[Better Steel Through, Better Technology]
Kalyani Steels Ltd, is a part of the over $2.1 billion Kalyani Group.
Established in 1973, Kalyani Steels Ltd is a leading manufacturer of forging and
engineering quality carbon & alloy steels using the Blast Furnace route.
With its corporate headquarters in Pune, Kalyani Steels Ltd. was set up to
fulfill the in-house requirements of forging quality steel of the Kalyani Group
In 1997, the Kalyani Group set up a new plant to manufacture steel using the
less power intensive mini-blast furnace route. The new facility is at Ginigera in the
Hospet - Bellary region of Karnataka state, where iron ore is abundantly available. This
integrated steel complex has capacity of 400,000 tpa of carbon and alloy steels, which
is being expanded to 650,000 tpa.
Over the years, Kalyani Steels has been continuously upgrading its technology
and infrastructure. The facilities at KSL are at par with any sophisticated steel
manufacturers in the world
Although the forging industry in India is the primary market for the
company’s products, markets of various components for commercial vehicles, two
wheelers, diesel engines, bearings, tractors, turbines and rail also form a substantial part
of the company’s clientele. KSL has earned the status of preferred steel supplier for
engineering, automotive, seamless tube and primary aluminum industry.
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Organization study
B.N.KALYANI:- GROUP CHAIRMAN
Mr B N
Kalyani, Chairman of the USD 2.4 Billion, Kalyani Group is the principal driving force
behind the growth and success of the Kalyani Group of Companies.
An able entrepreneur and technocrat, Mr Kalyani has enriched the group with his
vision of sound business governance and value driven management practices. He is the
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Organization study
driving force behind the company's vision, products, market direction, and company's
spirit & commitment to superior quality. While he has been instrumental in elevating
the company to new heights, he is responsible for the company's strategic planning,
policies & corporate directions.
He also inspires the company's unique culture by promoting core values that
focus on people, customers, innovation, quality, integrity, fun, and profitability.
With a business experience of more than 27 years, Mr. Kalyani has set the group
on its growth path and is credited with the extraordinary vision for its entry into the fast
emerging infrastructure development arena in India.
Born on 7th January 1949, Mr. Kalyani is an Engineering Graduate from the Birla
Institute of Technology, Pilani, and post graduate from the Massachusetts Institute of
Technology, USA.
Mr. Kalyani is Member of key Government Committees that include National

Manufacturing Competitiveness Council; Board of Trade; and Development Council for
Automobile and Allied Industries. He is the Member of the National Council of
Confederation of Indian Industries; Chairman, Board of Governors, IIM Indore; and
Chairman, Board of Governors, SGGS College of Engineering & Technology, Nanded.
He is member of World Economic Forum, Switzerland; Commonwealth Business
Council, UK; and India-US CEO's Forum.
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Organization study
Mr Kalyani is associated with the Indian Education Initiative and has founded
Pratham Pune Education Foundation, an NGO that provides primary education for
underprivileged children.
In 2004 Mr Kalyani was awarded "CEO of the Year" by the prestigious Business
Standard newspaper. In 2005 he was recipient of "Entrepreneur of the Year
(Manufacturing)" Award from Earnst & Young. In February 2006, The Jagatik Marathi
Chamber Of Commerce and Industry honored him with their "Global Entrepreneur of
the Year" Award. On 9th April 2006 Mr Kalyani was awarded "Rashtrabhushan" award
by FIE Foundation for outstanding contribution in Industrial Globalization.
The Symbiosis International University, Pune has accorded Mr B N Kalyani with

'the doctorate title' recognizing his invaluable service to the nation in putting the Indian
Manufacturing industry on the Global Map. The IIMM has conferred him with the CEO
of the Year Award 2006 for his outstanding achievements and contribution to Business,
Industry, Society and to the Materials Management Profession at large.
Mr Kalyani was recently honoured with Business India’s “Businessman of the

Year Award for 2006.
KALYANI GROUP:-
The Kalyani Group is one of the leading Industrial Houses in India, having
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Organization study
diverse business interests in Engineering Steel, Forgings, Auto Components, Non

Conventional Energy & Speciality Chemicals. The Group’s Annual Turnover is over
USD 2.4 billion and has joint ventures with some of the world leaders such as
ArvinMeritor, USA, Carpenter Technology Corporation, USA, Hayes Lemmerz, USA,
FAWCorporation,China,etc.
Bharat Forge Limited, the flagship company of the group is the second
largest forging company in the world a nd the largest domestic player with a share of
80% in axle components and engine components.
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Organization study
The Kalyani Group operates in four different business areas. The chart below
illustrates how, in percentage terms, the Kalyani Group companies in each of these
areas contribute to the overall makeup of the group. The table that follows shows the
group's financial performance for the last
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Organization study
Our success has been founded on a clear vision of leveraging our core
competencies to maximum effect and this has been a feature of our impressive growth
for some years. Our growth and the significant changes we have seen in our businesses
have relied on our ability to manage the process of change in a proactive way and has
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Organization study
been a direct result of our ability to recognize and enhance our strengths.
Careful targeting of prospective partners is a core ingredient, but it is our ability

to realize the potential locked-up in alliances, which has contributed to our success.
A common foundation for all our businesses has been building mutually
beneficial relationships with our partners and customers and this features in all areas of
our business. Our clear aim is to forge long-term, profitable alliances, be it with
partners or customers.
Growth is one of the leading management challenges for corporations. Our goal is
to dominate each and every segment of the market where we operate. The Group's low
key, but focused style of management has earned the company recognition amidst
investors, employees, vendors and customers, as also worldwide recognition.
The growth of the Group through the years has been influenced by a number
of factors:
• Focus on core businesses, to maximize immediate growth potential

• Aggressive cost savings programs
• Expand geographically to build global capability and leading positions
• External growth through acquisitions
VISION:-
Kalyani Steels sees itself as a GLOBAL ONE-STOP SHOP for Automotive &
Engineering Steels.
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Organization study
A major gear shift to anticipate changing needs of user industries is the need of the
hour. The company is already producing newer grades in Micro-alloyed steel segment.
KSL intents to increase its product reach and range by continuous efforts on new
product development.
The company aims to augment its capacity to 1 million ton, while attaining self
sufficiency for major raw materials viz. Met Coke and Iron ore.
a. Coke: By adding coke oven batteries.
b. Iron Ore: By gaining controls on mining operations.
& economizing the operations by...
a. Generating power from flue gases of blast furnace/coke oven batteries.
b. Reduce material handling losses and freight costs by building railway sidings at
plants
Business strategy:-
To attain market leadership in value added,

engineering steel segment
By
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Organization study
Constantly upgrading manufacturing technologies

&
adopting cost effective methods of steel making
thus
enchasing shareholder value.
MILESTONE:-
1973 Setting of KSL, Pune Facility
1997 Setting of Ginegera Plant
Setting up of Bharat NRE Coke, About Kalyani Steels

2004
Dharwad
Ltd (Pig Iron Division),
Commencing KSL, Siruguppa
2005 Siruguppa:-
Operations
Commissioning of Captive Power Plant
2005
at Ginegera Year of establishment:
2007 Acquisition of SJK Steel Plant, Tadipatri November 1994
Sales turnover 2007-08: 10,000 tons
No. of employees: 386
Business area:-
Pig Iron
M/S KALYANI STEELS LIMITED (LESSEE)
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Organization study
(PIG IRON DIVISION)

(Operator and Producer)
M/s Shree Ram Electro Cast Pvt. Ltd (LESSOR) Kolkata

At: Honnarhalli, Post: Hatcholli, Taluk: Siruguppa, District: Bellary,
Karnataka State – 583 114
Registered Office,
Kalyani Steels Limited,
Mundhwa,
Pune 411 036
INTRODUCTION
PREAMBLE:-
M/s Kalyani Steels Limited (Pig Iron Division Siruguppa) are running
a pig iron industry situated at Honnarhalli village, Siruguppa taluk, Bellary district.
Originally, this industry was established during November 1994 by M/s Uni-Metal Is
pat Ltd and since 01-11-1997 it was closed. On 23-11-2004, this industry was sold to
M/s Shree Ram Electro cast Pvt. Ltd. Subsequently, on 21-04-2005 the industry was
leased to M/s Kalyani Steels Limited (KSL) and since then the industry is running
continuously. The industry has an installed capacity of 90000 TPA pig iron. However,
the Consent for Operation from KSPCB was obtained for the production of 60 000 TPA
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Organization study
pig iron. M/s Kalyani Steel Limited is an Indian company with worldwide refutation in
steel and alloy steel manufacture. Considering huge demand in the country, the
company has proposed to enhance the pig iron production capacity of the industry from
60 000 TPA to 120 000 TPA. The production capacity will be enhanced mainly by full
utilization of the existing surplus plant capacity and up gradation of process technology.
The expansion does not involve procurement of additional land or construction of
additional buildings. The capital investment (Gross Block) of the industry for exist
capacity is Rs. 2640 Lakhs. Additional investment needed for enhancement of capacity
is about Rs. 60 Lakhs.
NEED FOR THE EXPANSION:-
Pig iron is basically used as a raw material in the production of cast

iron products, steel, alloy steel and cast iron. The iron/alloy and steel plants are the
essential for the growth of manufacturing and engineering industries, construction
activities and infrastructural development. Since 1998, the consumption of steel in the
country has increased by about 12 % per year. In view of the present encouraging
industrial and economic growth in the country, which is likely to continue in future, M/s
Kalyani Steels Limited has proposed to enhance the production capacity of its pig iron
plant at Siruguppa. Bellary region in Karnataka state is a potential zone for
establishment of iron and steel industries because of its accessibility to natural
resources including water and raw material like rich iron ore, dolomite, manganese ore
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Organization study
etc. Further, it helps to enhance the status of this underdeveloped rural area through
improvement in roads, communication, job opportunities and other infrastructural
facilities. The Government of Karnataka envisaged the policy to encourage iron and
steel industries in the state.
LOCATION DETAILS:-
The site is located adjacent to the district road joining Siruguppa and
Hatcholli village and is about 6 km from Hatcholli and 16 km from Siruguppa. The
nearest villages to the site are, Honnarhalli: 2km N, Chikkabellary: 3km NE,
Chigaragadde: 3 km E, Kurudahal : 4 km S and Hatcholi:6 km NE. The location is
basically rural and agrarian. Iron ore, the main raw material for pig iron is abundantly
available in Bellary district and other raw materials are also available from near by
places.
The perennial rivers Thungabhadra and Hagari are about 3 km WN and 5 km

SW from the site. The region has plain lands gradually sloping towards the rivers.
Paddy is the main crop with sugar cane, sun flower, chilli are the other crops. Rice mill
is the only industrial activity in the region and these are located (24 Nos) located at
Siruguppa town and surrounding region. Environmental sensitive locations such as
archeological structures, protected forests etc. are not present. However, rivers
including Tungabhadra and Hagari are flowing in the study area.
DESCRIPTION OF ENVIRONMENT:-
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Base line environmental data were collected primary and secondary

sources for the study area 10 km region from the site. The environmental parameters
studied were weather, air, water, soil, ecology and socio-economical status. The region
experiences tropical climate with hot summer and moderately cold winter. Monthly
mean of maximum temperature during summer and minimum temperature during
winter rises up to 41.2 0C and falls to 10.7 0C, respectively. Annual average relative
humility is about 65 %. Rain is received from SW monsoon (June-September) and N-E
monsoon (September-November). Average annual rain fall is 645 mm and most of the
precipitation occurs during May to November. Winds are moderate and predominant
wind speed are in the range of 2 to 19 km/hr. Major wind direction are W to E and E to
W. education status. Ambient air samples were collected from 10 different locations
within and outside the factory premise and tested for their quality. The quality of air in
the region appears to be within the CPCB standards for the rural and industrial area.
Surface water samples were collected from Tungabhadra and Hagari rivers and
groundwater samples were collected from 10 bore wells located in the region. Surface
Water is almost neutral and its salinity is low. However, it contains turbidity, suspended
solids and coli form organisms. It is suitable for drinking after conventional treatment
and disinfection. TDS and total hard ness of ground water are moderate to high and they
are in the range of 680-1048 mg/l and 320- 526 mg/l, respectively. The quality of bore
well water in general is within the permissible limits for drinking and domestic uses.
Soil samples were collected from six different locations in the region and tested for
their quality. Soil in the region is clay loamy to sandy loam in structure. Concentration
of soluble salts & plant nutrients are moderate in all the soil samples. The soil in
general is suitable for agriculture.
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Organization study
The region is basically agrarian and crops cultivated are paddy, maize, sun
flower,Cotton and sugarcane. No forests or thick plantations in the region except the
Vegetation observed at the banks of river and streams. The region is relatively backward
with respect to education, communication and education status.
PROJECT DESCRIPTION:-
MANUFACTURING PROCESS:-
The raw materials iron ore, coke, limestone, dolomite, manganese ore and
quartz are charged into top of the furnace through conveyors. Atmospheric air is heated
in Metallic blast furnace and then blown into the bottom of the blast furnace. Raw
Materials descending from top of the furnace come in contact with hot air. The carbon
in coke reduces iron ore to molten Iron (hot metal). The hot metal is collected at the
bottom of the furnace. The impurities in the ore form slag. Slag being lighter floats on
the hot metal.
Hot metal and slag are removed separately from the furnace. The hot metal
after solidification is cooled in to iron castings by spraying with water. The pig iron
castings are then transferred to finished product yard. The hot slag is cooled and
granulated into powder form by spraying with water. This slag along with water is
collected in atank.BF gas which comes out of the blast furnace contains suspended
solids. This is treated in an efficient gas cleaning unit consisting of dust catcher, two
stage venturi scrubber, saturator and dry cyclone separator. B.F gas contain good
amount of heat (600-700kcal/Nm3). The clean and cooled BF gas is then used as fuel in
metallic blast pre-heater and boiler.
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RAW MATERIALS AND PRODUCTS
Pig iron is the product from the industry. Pig iron production capacity will be
increased from the existing 60000 TPA to 120000TPA.The raw materials are mainly
iron ore, coke and limestone. The requirement of these raw materials for the existing
capacity is 136 140 TPA, 46 680 TPA and 11 160 TPA, respectively. After enhancement
of capacity the requirement of raw materials will be doubled. The iron ore mines are
present in Bellary- Hospet region. Limestone is to be brought from Bagalkot (approx.
200 km) by road. Coke is mostly imported and transported from nearest port by road.
Except coke, all other raw materials are locally available. Means of raw material
transportation is by road.
LAND UTILIZATION
The total land area is 116A -17G acres. Out of this 38A -00G is the factory
premises covered with plant facilities and green belt. The balance of 78.17 acres is open
area around the factory premise. Production enhancement will be achieved in the
existing plant facilities and no additional is required for the purpose.
MAN POWER
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Man power in the industry is 351. After enhancement of production the man
power will be increased to 386. More than 80 % of the manpower is recruited from the
local area.
POWER PLANT
The existing plant is already having a 2.5 M.W. power plant. The power
plant consists of high pressure boiler a turbo generator. Blast furnace gas is used as fuel
in the boiler. The existing power plant has adequate capacity to meet the power
requirement even after enhancement of the pig iron manufacturing capacity. The power
requirement of the industry is fully met from captive source. Only during the
emergency of power shortage from captive source, the power will be drawn from
KPTCL (950 KVA) or diesel generators (1250 KVA each – 2 Nos.).
WATER REQUIREMENT
Water requirement to the industry is met from Tungabhadra River. The

fresh water Requirements to the industry for its present and expanded capacities is 862
m3/d and1157 m3/d, respectively. Government of Karnataka has sanctioned the
industry to draw24000 m3/d water from the river. The industry has constructed a water
reservoir of about 100 000 m3 capacity. This tank is filled up during rainy season.
During lean flow in the river water will not be drawn from the river. During such period
water from the reservoir will be utilized to meet water requirement in the industry.
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ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES
Pollution is likely to be caused mainly due to the discharge of waste products to

the environment. Waste products from the industry are,
i. Gaseous emissions from boiler and air pre-heater.
ii. Fugitive emission from solid handling points and vehicular movement
iii. Solid waste disposal
The environmental parameters such as air, water and land are likely to be affected by
the discharges of gaseous, liquid and solid wastes. The environmental impacts and their
mitigation measures are given below.
AIR ENVIRONMENT:-
Blast furnace gases are used as fuel in boiler and air pre heater furnace. These
gases are contaminated with suspended particles and therefore cleaned in a gas cleaning
plant before being used as fuel. Flue gases from boiler and air pre-heater are vented
through stacks of adequate height. Flue gases contain pollutants such as SPM, SO2 and
NO2.The concentration pollutants in flue gases are within the permissible limits and
will not affect the air environment. Fugitive emissions are likely to be present at solid
handling locations such as loading and unloading points, solid storage yards and roads.
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Water spraying and sprinkling is practiced at these locations to control fugitive

emissions in the industry.
WATER ENVIRONMENT:-
After enhancement of capacity a total of 1157 m3/d of water will be utilized in

the industry. A water reservoir of about 3 month’s capacity is constructed in the industry
for use in summer months. During lean season water will not be drawn from the river.
Water is used in the industry for cooling, quenching and dust suppression applications.
These water streams are totally re-circulated and only the makeup water is added to the
system. Water requirement is mainly to meet evaporation losses in cooling water
systems and dust suppression. There are no industrial effluents from the industry.
Domestic effluent (36 m3/d) from the industry is small in quantity. It is treated in septic
tank and discharged through soak pits.
SOLID WASTES:-
Solid wastes such as Iron ore fines, Coke fines, B. F. Slag, GCP Dust and GCP
Sludge are produced in the industry. These are sold to cement plants, sintering plants for
their reuse. No solid wastes are disposed to environment. In view of the waste
management and pollution control measures as above the environment including air,
water or land environment is not affected by the activities of
the industry.
ENVIRONMENTAL MANAGEMENT PLAN:-
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A comprehensive environmental management plan is adopted for the protection

of environment. In addition to pollution control the plan consists of following measures.
1. Environmental Cell under the chairmanship of Factory Manager is created in the
industry to plan and effectively manage the environmental activities.
2. Environmental Department is formed under environmental and safety officer to
implement the activities of environmental management plan. It has overall
responsibility of environmental protection and pollution control, including the
maintenance of pollution control facilities, laboratories, self monitoring and also to
maintain operational statutory records.
3. A monitoring system is established in the industry to test the quality of environmental
parameters such as air, water and noise on regular basis as indicated below to ascertain
pollution status within and around the plant.
4. Storm water gutters and storm water reservoir are constructed in the premise. Bunds
and soak pits are provided for harvesting of rain water.
5. Green belt and greenery is development in and around the factory premise.
6. Roads in the premise are finished with paving and lining to avoid dust emission
7. Water spraying and sprinkling is practiced at loading and unloading points and solid
storage yards to control fugitive emissions in the industry.
8. Occupational safety and health care systems and emergency management plan are
followed in the industry.
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Organization study
PROJECT BENEFITS:-
1. The industry is established in backward region of the state. The presence of the
industry helps to develop road and transportation facilities in the region and also to
improve the economic status of this rural underdeveloped region.
2. After enhancement of capacity, more than 800 persons will be engaged in the factory
activities including direct and indirect employment in terms of factory employment,
transportation, vehicle maintenance, etc.
3. The industry has the potential to curtail the export of iron ore and utilize the same in
the country for production of steel. This will reduce the import of steel.
Thus the industry has the advantage to improve foreign exchange position and the
economic status of the country.
PRODUCT PROFILE
The Pig iron manufacturing unit (called as “Pig iron SBU” – Strategic Business
Unit). The process starts with the manufacture of pig iron. The pig iron division consists
of 1 Mini blast furnace of 175 M3 working volume. The raw material for blast furnaces
(iron ore, Coke, quartzite, dolomite, manganese and Lime stone) are fed to the furnace.
The blowing system absorbs atmospheric air and blows it to the preheating section at a
pressure of 1.25 Kg/cm2 and a volume of approximately 35000 Nm3/hr. This air is
preheated in the preheated section to a temperature of 700 – 750oC. This hot high
pressure air is then blown into the furnace. The air is blow from bottom, while the raw
material is fed from top. Because of the hot air following in the counter flow direction,
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Organization study
reduction of iron ore takes place. The coke in the raw materials acts as the main fuel to
accelerate reduction of iron ore to iron in the form of liquid metal at 1500oC. The
molten metal is then tapped out of the furnace and cast in the form of bricks called as
pig. This casting process is carried out in the pig casting machine, where the molten
metal is poured onto moulds and sprayed with water, for fas7ter solidification of iron.
Pig
Iron
ORGANSATION CHART
VICE-PRESIDENT
PRODUCTIO HR & ADM PURCHASE MIS Q.C & SAFETY

Assistant N MANAGER MANAGER MANAGER MANAGER PROCEES MANAGER
FINANCE STORES MANAGE
MANAGER MANAGER
Junior R
Manager
Shift Officers
Accounts Engineers Sr. Chemist
Sr.
Officer
Junior Sr. Assistants Supervisors Purchase Research & Junior
Sr. Engineers Assistants Engineers Development Shift Officer
Supervisors
Supervisors Chemist
Supervisors Time Keepers Purchase Medical
Asst. Stores Assistants Assistants
Chemists
Sr. Keepers
Supervisors
Officer Supervisors Junior
Junior Clerks
(Excise) Chemist
Dispatch Cast House
Supervisors
Assistants
Trainee 32
Govt.
Dispatch R.C. Operator
College of Commerce & Management Chemist
Assistants Foreman
Data Entry
Sampler
Operators
Organization study
Functional Departments of the Company:-
a. Human resource Department.
b. Production Department
c. Quality Assurance Department.
d. Finance & Accounts Department
e. Management Information System Department.
f. Purchase Department.
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Organization study
g. Stores Department.
h. Safety department.
Human Resource Department:-
The Human resource Department is a part of the management function.

Primarily these departments will deal with human relationship within & outside the
organization and department will maintain ‘WE’ feeling in the organization and make
the employee/individual to contribute to the effective working of the undertaking. The
Human resource Department will co-ordinate with all the departments to maintain a
harmonious industrial relationship in the industry.
The Human resource Department in fact more than equipment, machinery,

building, furniture and fixtures and organization identity and purpose which mainly
depended on the human resource which it can procure, maintain develop and utilize to
accomplish the organization’s goal. The management of human resource is more likely
to be known as “Human resource Management’.
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Organization study
The role of the Human resource management in an organization is more

valuable to achieve the organization’s goals. The Personal Department will conduct the
advanced technical training to develop the employee’s skills at the works.
DEPARTMENT STRUCTURE OF FINANCE:-
Vice-President
Vicekk
HR&Admn Manager
Senior Asst Asst Time Keepers
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Core responsibilities of HR & Administration
1. Recruitment and selection:-
 Analyzing the human resource requirement for the different projects, in co-
ordination with the project managers.
 Co-ordinate and set up the team for technical interviews.
 Conducting initial HR interview rounds with the candidate and issue offers to the
short listed/ selected candidates.
 Suggesting an appropriate salary by referring to the salary bands and consulting

with the concerned manager and top management.
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Organization study
 Carrying out reference checks for each candidate and immediately raising a
concerned to the manager (if any)
2. Induction:-
 Ensuring the completion of joining formalities.
 Giving new employees a presentation on the company, orientation and basic

office information.
 Maintaining employee data.
3. Training and Development:-
 Collection of tech/non tech training needs and sending the information to the
management.
 Preparing the training Plan and Budget.
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Organization study
 Setting up a team of house trainers.
 Organizing and felicitating the training.
4. Employee Relation.
 Clarifying the employee’s queries about the HR policies.
 Creating a HR manual/ Policies/Fitment-Increment.
 Understanding employees concerns, escalating to appropriate levels and ensuring

resolution of the concerns.
5. Appraisal Process:-
Initializing the appraisal at different intervals for different employees in conjunction with
concerned managers.
Clarification and Co-ordination for smooth flow of the process.
Exit interviews: - Conduct one to one discussions with separate employee to

find the issues. This would lead to the separation. Provide appropriate feed back to
concerned person of the concerns emerging from the exit interaction.
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Organization study
6. Employee MIS:-
 Maintaining employee master data.
 Preparing joining, Head count, attrition MIS.
 Provide compensation details to the accounts department for salary processing.
 Should be responsible for training and managing staff activities (Projects,

internships and etc).
 Office administration.
 Handling the PR activities. Interacting with the villagers and land losers.
7. Payroll and Compensation Benefits & Statutory:-
 Processing of payroll every month.
 Updating of new joiners/ full and final settlements.
 Maintain and prepare the standard of salary structure, track all the details of
salary and prepare MIS report.
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Organization study
 Track leave records on daily basis and monthly basis.
8. Administration and Time office:-
 Attendance / Muster Roll.
 Front office administration.
 Vehicle management, Guesthouse security Etc.
Superannuating & P.F:-
The employees in the grade of engineers and are covered under the
superannuating scheme. All the employees are covered by P.F.
Communication:-
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Organization study
The telephone exchange of the company works round the clock. The senior
officers and essential service engineers are provide with phones and mobile phones to
communicate effectively.
Canteen facility:-
The company has provided canteen facility to its employee and contract workers.
Tea, coffee, breakfast, lunch, &dinner is provided for the employees at concessional
rates. In case of the spot wherever necessary. In night shift, tea coffee & buns are
provided.
Leave Facility/Holidays:-
All employees are entitled for a weekly off and are eligible for 9 paid holidays and
1 restricted holiday in a calendar year. They are also eligible for 24 days earned leaves
& 8 days casual leaves in a calendar year.
Attendance and Identity card:-
Every employee of the company is provided with an identity card and daily the
attendance also taken.
Gate pass for Official/ Personal work:-
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Organization study
Every employee of the company will have to submit gate pass for official/
personal work going out of the factory.
Salary Payments:-
Salary is paid to all the employees normally by seventh day of every month and
through syndicate and State Bank of Mysore.
LTC:-
LTC amount is paid to the eligible employees once in a year normally along with
the salary payable for the month of April. An employee will be eligible for LTC only
after completion of one year of service.
Discipline:-
All employees are governed by Certified Standing Order of the Company and
also as per terms of their appointment letter. The Certified Standing Order of the
company has been displayed on notice board & also available at Human Resources
Development for ready reference.
Safety:-
The safety department conducts safety training programs for employees and gives
the guidance regarding do’s 7 don’ts
.
Annual Appraisal System:-
The company has annual appraisal system. The employees joining the duties
between January & June get their increment in April and the employees between July &
December get their increment in October subjected to satisfactory performance. The
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Organization study
increment is given only after completion of one year service. Promotions are also given
in the deserving cases. Promotion cannot be claimed as a matter of right and it is a
prerogative of the management.
Retirement:-
The age of retirement is 58 years, in case of permanent employees.
Resignation/ Separation:-
One month’s notice, as the case may be, as specified in the appointment letter
or payment in lieu of notice will be necessary for termination of service from either
side.
TIME OFFICE
It is a branch of Human resource Department. Time office is a key to Human

resource Office. The primary function of time office is to maintain the attendance
register of the employees and leave register and wage and salary exemption of all
employees.
Every employee of the company will be provided with an identity card,
production of which is mandatory to gain, attendance into the company premises during
the assigned shift.
Every employee shall on demand by authorized persons, shall produce the card.
Failing to produce the card will debar the employee from work for the day and also
make him liable for disciplinary action. The Identity Card cannot be transferred and in
the event of loss of identity card, the employee shall immediately report the loss to
security and Human resource department. The employees shall bear the entire cost of
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Organization study
reassurance, discharge retirement etc., the employee shall return the badge to the
issuing authority.
The employee should produce the Identity Badge to.
 To watch and ward staff when entering.
 To the wages / salary disbursement clerk, cashier or any other officer of the
company while receiving wages/salary and allowances or
 On demand by an officer of the company.
 Any employee who is found to have entered the company premises without
badge, issued to him will be liable to be sent out and will be treated as
absent.
Production Department:-
The vision of the Kalyani Group is to be recognized globally as leaders through

engineering excellence, providing diverse skills to all its existing and emerging
businesses. It is our mission to provide responsive, valued and critical manufacturing
technologies and engineering expertise in support of worldwide goals.
Our objectives are to meet/exceed customer expectations, utilize the best

applicable technology, and continuously improve our overall effectiveness as a high-
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Organization study
performance, learning-based operation.
For more than 35 years, Manufacturing Technology Strategies have been leading
the way in helping corporations of all shapes and sizes improve their efficiencies and
bottom line. We help our managers in manufacturing plants achieve their business goals
through technology and people development.
Today's ultra-competitive automotive marketplace demands superior product,

process and technology. It requires people with in-depth technical know-how and a
spirit of innovation. The results are world-leading processes, components, and continual
increase in manufacturing efficiency and productivity.
Bharat Forge Ltd., the flagship company of the Kalyani Group is the largest
forging company in Asia and one of the three largest and most technologically advanced
commercial forge shops in the world. BFL has been leveraging technology in its
endeavor to transform itself into a world class manufacturing company. It has, over the
years, been investing in technology to enhance efficiencies, production quality and
design capabilities. IT tools are being used extensively for product development,
compressing production and product development time, supply chain management and
product marketing.
Our objective is to eliminate all non-value added processes, thereby reducing

cycle times in all facets of our business.
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Organization study
Our world class manufacturing is supported by corporate research including

R&D, engineering support, advanced metallurgical analysis, and cutting edge testing
facilities. This support structure, coupled with outstanding manufacturing capabilities,
allows us to consistently provide our customers with the highest quality products and
ensure our world-class status in this global marketplace.
Our ability to penetrate foreign markets and increase global clients reflects the
company’s high technological capabilities.
Kalyani Steels Ltd (Pig Iron Division), Honnarhalli, Siruguppa.
Pig casting
(10,000 tons
per annum)
machine
Pig- Iron
Process Flow Diagram for Pig-Iron Plant

Liquid
Metal
Furnace
Blast
Mini
Blast furnace
Air (740c)
Hot Blast
Flue Gas
Pre-Heater
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Organization study
High pressure
Boiler
Handling System
Blast
Raw Material
Steam
(High Pressure fans)
Blowing System
Turbin
e
Turbo-Generator Set
cdAtmosphere
Aerometer
mosccc
Air
OBJECTIVES OF PRODUCTION DEPARTMENT:-
 Keep constant HBT – 750oC.
 Avoid break –down/Blast- leakage.
 Reduce consumable cast.
 Optimum utilization of F/C & M.C.
 Reduce coke rate.
 Maintain minimum power cost/unit.
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Organization study
 Co/co2 Ratio =1.15 to 1.20.
 Reduce the skull generation in PCM & cast house.
 Improve Hot-metal yield.
 Give PCM for maintain in every shift.
 Co-ordinate with others department.
 Keep housekeeping.
MANUFACTURING PROCESS:-
The raw materials iron ore, coke, limestone, dolomite, manganese ore and quartz
are charged into top of the furnace through conveyors. Atmospheric air is heated in
metallic blast furnace and then blown into the bottom of the blast furnace. Raw
materials descending from top of the furnace come in contact with hot air. The carbon
in coke reduces iron ore to molten Iron (hot metal). The hot metal is collected at the
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Organization study
bottom of the furnace. The impurities in the ore form slag. Slag being lighter floats on
the hot metal.
Hot metal and slag are removed separately from the furnace. The hot metal after
Solidification is cooled in to iron castings by spraying with water. The pig iron castings
are then transferred to finished product yard. The hot slag is cooled and granulated into
powder form by spraying with water. This slag along with water is collected in a tank.
BF gas which comes out of the blast furnace contains suspended solids. This is treated
in an efficient gas cleaning unit consisting of dust catcher, two stage venturi scrubber,
saturator and dry cyclone separator.
B.F gas contain good amount of heat (600-700kcal/Nm3). The clean and cooled
BF gas is then used as fuel in metallic blast pre-heater and boiler.
PRODUCTION FUNCTION:-
Equipment processes personnel are qualified to perform the required operation’s

respective department reports qualified records objectives evidence of conformance to
specified requirements.
Product identification traceability:-
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Organization study
Purpose: to provide guidelines for establishment procedure fir identifying the

product by suitable meson’s respect during stages of production to delivery.
Method: pig iron:-
Incoming raw materials shall be identified by location marked for supplier wise
storage other materials are identified by any of the following means tag location for
storage point marks pencils marks name plates boards sticker.
Quality system:-
To provide guidelines to establish. Document & maintaining a quality a means
to ensure that product conformance to requirements. To outline structure of
documentation in quality systems. Trade line document the quality planning is done to
meet the requirements of product.
Method
Quality assurance manual (QAM)
The top ties document prepared primarily conveying the organization

commitment to quality & maximizing customer satisfaction
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Organization study
Common procedure manual (CPM)
This is second ties document prepared by Mr Issues these to all department

heads for common procedure.
Divisional procedure manual.(DPM)
This is also second ties document prepared by divisional heads dealing how a job
is done with responsibility specified department procedure of HRM & TRG are
prepared by respective department heads.
Work instruction
This is third ties document primary to operate with specify work details there are
generally issued by document or sectional heads & when required they translated in
vernacular language (Kannada).
Forms/ formats
Standards check seats supporting documents etc these are primarily designed by
departments taking into consideration the procedures/ work instruction details.
Pig Iron :
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Organization study
The specifications of the various grades of Pig Iron produced at KFIL are as
follows:-
PIG IRON Carbon (%) Silicon (%) Manganese Sulphur (%) Phosphorous
GRADES (%) (%)
Foundry 3.80 – 4.20 2.00 – 2.50 0 50 – 0.90 0.06 Max 0.09 Max
Grade 3.80 – 4.20 1.80 – 1.99 0.50 – 0.90 .06 Max 0.09 Max
3.80 – 4.20 1.51 – 1.79 0.50 – 0.90 0.06 0.09 Max
Max
Basic Grade 3.80 – 4.20 <1.00 0.40 – 0.80 0.08 Max 0.09 Max
3.80 – 4.20 1.00– 1.25 0.40 – 0.80 0.08 Max 0.09 Max
3.80 – 4.20 1.26 – 1.50 0.40 – 0.80 0.80 0.09 Max
Max
Quality Assurance Department:-
"Excellence Through Quality" is the Group's philosophy, while low cost and
competitiveness in the domestic and export markets are a part of the Kalyani Group
Strategy.
The Kalyani Group is committed to continual improvement of product, process
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Organization study
and service, with the ultimate goal of total customer satisfaction. The Quality Systems
across the Kalyani group employs customer driven processes that assure proactive focus
on understanding customer needs and exceeding expectations. Quality planning drives
improvement initiatives and quality metrics are established to continually assess
progress and achievement of Quality Objectives strategically aligned to key areas of
business. Quality Excellence is facilitated through customer partnering and
involvement, concurrent product lifecycle design, advanced and streamlined
manufacturing operations, and best-in-class customer services.
Almost all companies across the Kalyani Group have promptly obtained
certification to the latest and most comprehensive ISO 9001-2000 Quality Standards.
This exemplifies our commitment to and achievement of World Class Excellence.
Our objective is to eliminate all non-value added processes, thereby reducing cycle
times in all facets of our business.
Our world class manufacturing is supported by corporate research including

R&D, engineering support, advanced metallurgical analysis, and cutting edge testing
facilities. This support structure, coupled with outstanding manufacturing capabilities,
allows us to consistently provide our customers with the highest quality products and
ensure our world-class status in this global marketplace.
Our ability to penetrate foreign markets and increase global clients reflects the
company’s high technological capabilities.
Quality assurance division is a customer’s representative. This department acts as

communicating channel between customers and production department. They make
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Organization study
steel for automobile industries and also for stimulus tubes. It is also used for
transportation of oil and any other fuel.
In quality assurance department, marketing department plays in important role.

The marketing department will receive the orders of the customers. This process is
called as ‘Contract Review’.
Then the quality assurance department translates the need of the customers to the
production department. This department also inspects the cast And rolled products. It
checks the materials before it is taken for production and also tastes the products before
dispatching to the customers. Ever since the procurement of the raw material till the
dispatch of the final product the function of observation and examination of the quality
control department is keen and careful.
QUALITY POLICY:-
Quality policy of this department is to produce steel, which is based on the part of
the world.
Their main objective is to make steel very competitive in price. The orders from
the customers will be accepted only according to their capacity to produce.
Functions:
 Adding internal/external chemistry to attain a specified standard
 Testing the manufactured steel to any cracks or hot
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Organization study
 Check the raw material
 Check ferrous oil
Responsibilities:
 Making standard products
 Testing as per customer request
 Responsible for customer dissatisfaction
 To make steel competitive in prices
Quality Plan:
 Identify the customer
 Identify their needs
 Convert the needs into the specification
 Verify your capability and availability & if we are able to stock to a schedule of
manufacture & dispatch.
Finance & Accounts Department:-
GOALS:
 Profit maximization.
 Wealth maximization.
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Organization study
FUNCTIONS: -
 Funding Activity:
 Banks provide long term funds as well as short term funds
 Long term funds like debentures, term loans etc. are used for project financing
 Short term fund is taken to meet the working capital requirements
 Commercial banks help in giving short term funds
The finance department of KSL (pig iron division, siruguppa) has to be always in
touch with the head office, so that the corporate office can transfer the fund to the
unit/factory. This operation is called fund transfer booking.
2. Treasury Function:-
They maintain separate cash & bank balance book. They deal with funds by issuing
cheques or with drawing cash.
3. Book Keeping:-
A company should maintain separate books of account. There is a computerized

system including the accounts of purchase, sales, cash, bank, stock, tax, fixed assets etc.
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Organization study
The department has to disclose the information to the share holders of the company.
4. AUDIT:
It Consists Of:
1. Internal Audit, which is for only department.
2. External Audit, which include outside experts.
The closing of account is done on yearly basis. There will be yearly date i.e. on
April-March, which is considered as financial year. The main responsibility of accounts
department is to arrange the funds time to time. At the end of accounting period they
prepare profit and loss account, balance sheet. Then the final account is submitted to
share holders. After that the auditors do the final auditing.
5. MIS:
They display information about the cost of production plant performance & profit.
6. Taxation:
There are different types of taxes like Income tax, Sales tax, and Excise tax etc.
The income tax is of two types one on the company & the other in the establishment.
On the company it is based on the profitability. In the establishment the employees or
contractors will be leaved tax. The authorities take the responsibility of paying tax by
deducting the amount from their salaries.
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Organization study
7. Preparation of Financial Statement:
 Monitoring financial performance
 Looking into the working requirements like men, material, money etc.
 Maintain proper books of accounts
 Responsible of auditing
 Remind the management about the plant maintenance and performance by way
of budget monitoring
It is a unit of accounting where the raw materials are bought from kalyani Steels
Ltd (siruguppa).Accounts are totally independent. Company maintains its own
accounts. Then comes funding. It is based on cost basis. It is not profit center, it is cost
center. The functions of this dependent is to maintain accounts of this unit, coordinating
of head office and the unit for funds see that production is on.
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Organization study
RESPONSIBILITIES: -
 To ensure that the accounts are maintained properly and costing is calculated
using computerization technique.
 Deviations of cots are highlighted to management and effective utilization of the
funds.
 Up to date costing of the iron making, steel making and rolling operation to be
maintained.
Any decision regarding the financial requirements is taken jointly between the
site and corporate office. It is taken in a formalized means.
ORGANISATION CHART FOR FINANCE DEPARTMENT
Vice-President
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Organization study
Finance Manager
Cash Section Sales & Dispatch

Bill Section
Section
Management Information System Department:-
The main function of this department is-
 Computerization.
 Networking.
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Organization study
 Setting of Internet and info net.
Details of ERP packages:-
a) Order Acceptance System
In this system, the orders to produce goods are accepted from the customers. This
system has to take into account how much goods to be
Produced, when to dispatch, where to dispatch where to deliver the goods and
when to deliver the goods etc.,
b) Production Planning And Control
Order acceptance system and introduction planning and control are lined
together. Marketing people should know the pending orders. They should know
when the goods are to be produced. If good are produced the quality is not
cleared. If the quality is cleared the goods are not dispatched. These are the
reasons for the orders remaining pending. They should also know who the
customers an where the goods to be dispatched. Then they will give the daily
production reports. These reports will go to excise department for knowing the
stock availability.
c) Quality Assurance System
In this system, until the quality is cleared the dispatch advice can’t be made
as per the O.A. then the dispatch channel is prepared.
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Organization study
Truck loading sheet is important for quality people to check weather the right
product is loaded or not in the truck after that invoicing is done.
a. Financial Accounting System

b. Costing System
c. Stores And Purchase System
d. Excise System
e. Sales.
f. Pay roll.
Purchase Department:-
President approves purchase department. This department serves an important

purpose for user department. This dept. will float the enquiries by getting 3-4
quotations. After this they will prepare a comparative statement.
DEPARTMENT POLICY: -
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Organization study
The policy of this Department is that President should approve each and every
purchase requisition. The purchase order, which amounts up to Rs. 25,000/-, should get
the signature of Manager Commercial.
The Order which amounts from Rs. 25,000/- to Rs. 5,00,000/- should have a signature
of President and. The order which amounts above Rs. 5,00,000/- must have the
signature of President after this the gate entry will be made; next it will go to the stores.
Here they will prepare goods received cum inspection report i.e., GRIR then that will be
sent to user dept. and quality assurance dept. for their approval. After getting all these
departments approval lastly it will be sent finance dept. This above-mentioned procer
will take nearly for 1-2 weeks of time. The main responsibility of purchase dept. is to
procure materials.
ORGANISATION CHART FOR PERCHASE DEPARTMENT
Vice-President
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Organization study
Purchase Officer
Purchase Engineer
Purchase Asst 1 Purchase Asst 2 Purchase Asst3
STORE DEPARTMENT:-
To ensure availability of raw material with management quality and quantity at

right time with right price. To consider suppliers as partners in our business towards
TQM goals. It has keep FIFO method of storing materials. On the basis of item code
delivery order is to be considered. On the basis of store entry report, material has to be
issued. Department member is checking the materials.
Three grade of material A, B, C.
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Organization study
 Directly used material – iron, ore, coke, etc.

 Supporting system.
 Other raw material.
STORES FLOW CHART
Entry of Inward
Suppliers of iron ore:- material at
ingate
 Daksh minerals & marine Pvt ltd.

Weigh Bridge
 Sri laxmi Balaji .
Stores
 Sujatha enterprises
Store Entry
and Physical
Suppliers of coke:-
 Bhatia international ltd, indoore.

SE Report Generation Rise Dispensary Note
for quality inspection
 Gujrat NRE coke, Dharwad.
 Bharat NRE coke, Dharwad. Information to

Inspection purchase
If any deviation
If Accepted If Rejected
Only division i.e: If damaged / excess
Raising the disturbancy
Any work or Quality updation and for rejection to intimate
qty returned to party
modification GRR Confirmation to purchase and through NRGP
 Pig Iron suppleier
I.O.M. by Rejected material stored

concern dept GRR Printing signing
and storing in rejection room
through
Preparation of
If weighment Stacking
RGP for sendingrequired the material Material sent to party If weighment not required
the material for at appropriate location through NRGP
rework
Issuing the material

65
Govt. R.C. College
againstoftheCommerce
prescribed & Management
material requisition
slip authorized
signature
Organization study
SAFETY DEPARTMENT:-
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Organization study
The group is committed to having a safe and pleasant working environment. Health
& safety best practices form an integral part of the group's business activities.
We believe that our employees are the key to our company's success and it is our moral
responsibility to ensure that they have a safe & healthy working environment
Safety is a top priority in all our operations across the group. All group companies
have a safety committee that meets regularly to provide updates on safety issues,
conduct rehearsals of safety procedures and onsite emergency action plan and training
programs on safety related issues. Our goal is to drive injuries, occupational illnesses
and operational incidents as close to zero as possible. To realize our zero-accident goal,
we are taking further measures to reduce risks by undertaking risk assessment of our
manufacturing facilities. Operation manuals are prepared and each operation unit also
educates its employees on labor safety.
The group also continues its drive of 'Keep Fit' which it started in 2002. The
purpose of this drive is to reduce absenteeism due to illness and to encourage
individuals to follow a healthy lifestyle.
The Keep Fit drive includes regular health check-ups including health, diet and a
fitness test.
Responsibilities:-
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Organization study
That human life is precious. Safety of human lives and limbs has overriding
importance. Whatever else may be the business or manufacturing compulsions
 We are committed:
 To provide safe machinery, equipment, methods, operations, tools and
environment for prevention of accident.
 To achieve an integrated safety & health system in all areas of activities.
 To enforce relevant statutory provisions of safety and health for preventing
accident.
 We expect our employees:
 To observe safety rules
 To use safety appliances and devices
 To report to managers any unsafe condition of machines
 To work as per lay outs
 To care for personal hygiene
 To practice safety conscience, culture
 To be always alert in accident prevention measures
 We solicit co-operation of all employees to achieve the ultimate goal of "Total
Safety".
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Organization study
SWOT ANALYSIS:-
Strengths:
 Commissioning the iron plants has reduced the dependability on scrap.
 Non-existence of labour unions.
 KSL has its reach throughout south India.
 Very close proximity of iron ore depositions.
 Self power generation.
 Easy availability of raw materials.
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Organization study
Weaknesses:
 Due to Less source of funds the diversification capacity at four divisions of the
plant are not fully utilized.
 Not able to get the grants from various financial institution.
 Concentrated on South India market only but they neglected the other parts of
India.
 Costs of using electric furnace cannot be reduced & due to high consumption
and power KSL’s pricing is not very effective to that of its competitors.
 Lack of proper infrastructure.
 KSL has a common problem which most of the public sector units have that is
having more employees.
 The company is entirely depends on external transportations like truck operators,

railways etc because of these depends on external conveniences they have to
sometimes suffer loss.
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Organization study
Opportunities:-
 Globalization of Indian economy bound to increase demand levels.
 Major automobile units have come up in South India like Toyota Volvo etc
 Steel Industries such as Jindal, Kirloskar have come up in Bellary region from
which demand for steel will increase.
 Self power generator and effective utilization of power leads to lower cost of
production.
Threats:
 Attrition rate is high.
 Price hike in raw materials.
 Competition from the new entrants in the region like Jhanaki, Benaka & others
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Organization study
RECOMMENDATIONS
 It can provide good commission to the traders for further increase in sales.
 KSL could try to enter all the regions of India as its new market place.
 It may diversify to manufacture other products with steel.
 Effective management of cash receivables & inventory may be done to result in

satisfactory management of working capital.
 As the company is facing wrong selection of raw material a highly skilled &
expert person who is experienced in this field may be appointed in the purchase
department
 Dealers meeting can be conducted once in every 3 months to solve the problem
of dealers and as well as to get suggestion from them.
 Training program may be necessary for all the employers to improve quality of
production.
 It may reduce the costs, develop customer sensitiveness and give incentives to
the workers and employs.
72
Organization study
 As some of the employees refuse to accept new role & responsibilities they may
be motivated in terms of monitory benefits. There by the employers may take
initiatives to accept new roles & responsibilities.
 Though the employees are earning a reasonable amount of salary the company
could think of giving some hikes, depending on inflation level.
 The recruitment of employees to the organization could be made particularly

based on their skill and knowledge not by any references.
 Total quality management concept may be adopted in order to improve the

quality and other aspects of the company.
 Management may have to work more efficiently in order to improve the quality
and other aspects of the company.
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Organization study
FINDINGS:-
1. The performance appraisal system suffers from a lack of proper orientation of
the workmen towards the performance appraisal system.
2. No training has been organized by the organization for the appraisers to enable
effective performance appraisal. Lack of training to the appraisers leads to the
following drawback.
i. Lack of uniformity in communication of criteria to the workmen.
ii. Lack of uniformity in the post-appraisal follow up by the appraisers.
3. The post appraisal follow up is not found to be adequate.
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Organization study
SUGGESTIONS:
 Production capacity has to increase by adopting high technical machines
according to demand
 The Organization should take suggestions from workers and that have to be
implemented seriously
 By adopting more and more technological methods in production it can enter
easily to global market
 The organization should adopt various cost cutting measures by
o Reduction in wastage
o Reduction in maintenance
 The employees should be more educated in taking precautionary measures, while
they work in dangerous production unit
 Papers work has to be reduced.
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Organization study
SUMMARY AND CONCLUSIONS:-
M/s. Kalyani Steels Limited are running 60 000 TPA pig iron plant at
Honnarahalli village, Siruguppa taluk, Bellary District in Karnataka State. They
have proposed to enhance the production capacity of the plant from 60000 TPA
to 120000 TPA.
a. The enhancement of capacity will be achieved mainly by utilization of
existing surplus capacity and incorporating improvement and
modernization of process.
b. The Iron industry has national priority to overcome shortage of iron in the
country. This has the potential to curtail the export of iron ore.
c. The concept of Reduce, reuse and recycle is practiced in the industry as
per the eco-policy of Govt. of India. Cooling water is completely recycled
in the system.
d. This industry does not produce any toxic products and does not have
significant adverse effect on the quality of land, water and air. The
industry has taken all the necessary preventive measures to mitigate even
the small effects which may be caused by industrial activities.
e. There are no protected forests, sanctuary, archeological important
structures or other sensitive locations in the vicinity of the factory except
the river Tungabhadra.
f. Considering environmental management plan adopted in the industry to
protect environment and advantages of the industry to the country, the
authority’s can decision to accord environmental clearance for the
proposed production enhancement of the industry.
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Organization study
BIBLIOGRAPHY
1. ‘Human Resource & Personnel Management’

By K.Aswathappa.
Published by :TATA McGraw-Hill Publishing Company Limited
Fourth Edition
3. Internet reference
• www.google.com
• www.steel.senario.com
• www.indianstatistics.com
• www.KSL.com
77

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What is the proposed expansion of the plant's production capacity?

What is the proposed expansion of the plant's production capacity?

What are the objectives of the study?

What are the objectives of the study?

Organization study

TITLE OF THE STUDY:-

An Organization study at KALYANI STEELS LTD, HONNARHALLI,

INTROUCTION OF THE STUDY

It gives a exposure to researcher. It nurtures us to what is going on real corporate and

 It exposure the student to know how the industry work.

 Project helps in improving the presentation student.

OBJECTIVES OF THE STUDY:-

organization in terms of various functional departments.

 To learn about the present situation and performing of the company.

problems faced by the organization and to help them by suggestions to

understand the problems of various functional departments of the organizations.

of master of business administration as per the syllabus of Bangalore University.

SCOPE OF THE STUDY:-

 Useful to students to know the working setup in the organization.

the project in practical aspect.

 By observing the various departments of the organization.

 By interacting with various employees working in the company (interview).

 From the company manual.

 From the journals and management books.

 Brochures and records of the organization.

LIMITATIONS OF THE STUDY:-

were not covered.

the secondary data is reported.

purpose efficiently and meaningfully for which it has been intended.

With the help of liberalization, globalization of economy in the process, there

INDIAN STEEL SCENARIO:-

In addition, significant improvement was noted in the exports of semi-finished steel,

From a highly protected inward-looking industry of .the pre-liberalization years

GROWTH TREND OF PIG IRON SECTOR IN INDIA:-

Demand & availability of pig iron (units 000)

Years Demand Availability

♦ Basic glade (which is used for making steel/)

In the changed policy environment based on the tenets of economic

KALYANI STEELS LTD

B.N.KALYANI:- GROUP CHAIRMAN

Mr. Kalyani is Member of key Government Committees that include National

The Symbiosis International University, Pune has accorded Mr B N Kalyani with

Mr Kalyani was recently honoured with Business India’s “Businessman of the

diverse business interests in Engineering Steel, Forgings, Auto Components, Non

Careful targeting of prospective partners is a core ingredient, but it is our ability

• Focus on core businesses, to maximize immediate growth potential

• External growth through acquisitions

a. Coke: By adding coke oven batteries.

b. Iron Ore: By gaining controls on mining operations.

& economizing the operations by...

a. Generating power from flue gases of blast furnace/coke oven batteries.

To attain market leadership in value added,

Constantly upgrading manufacturing technologies

1973 Setting of KSL, Pune Facility

1997 Setting of Ginegera Plant

Setting up of Bharat NRE Coke, About Kalyani Steels

M/S KALYANI STEELS LIMITED (LESSEE)

(PIG IRON DIVISION)

M/s Shree Ram Electro Cast Pvt. Ltd (LESSOR) Kolkata