an organization study on alloys industry

CHAPTER-1

COMPANY PROFILE

Surana College PG Center 2009-2011

Introduction

Ferro alloy refers to various alloys of iron with a high proportion of one or more

elements, manganese or silicon for example. It is used in the production of steels and

alloys as a raw material.

The manufacture of Ferro alloys is highly power-intensive and therefore the cost of

power is critical to the competitiveness of the producers. On average, 50 per cent of the

total cost per tonnes of Ferro alloy is accounted for by power.

In the mid-1990s, the industry was hit by excess domestic capacity and a demand

recession made worse by substantial imports of Ferro alloys by steel exporters. The

slump was caused by inadequate indigenous demand and an inability to compete on the

international markets because of high power tariffs.

According to the Indian Ferro Alloy Producers Association (IFAPA), in 2001-02,

the Ferro alloy industry continued to be affected by recession with sluggish demand and

constraints of high power tariff anti-dumping duty on input material, reductant, and anti-

dumping duty on exports of Ferro alloys. Consequently, the output dropped by 8.28 per

cent during 2001-02 to 8.27 lakh tones from 9.02 lakh tonnes in the previous year. But

now, the signs of revival in the fortunes of the steel industry, both globally and

domestically, have brought cheer to a largely neglected industry — Ferro alloys — whose

fortunes are inextricably linked with that of steel.

Despite global meltdown, the Ferro alloys industry has registered a production

growth of 7.20 per cent during fiscal 2009-10, says TS Sundaresan, secretary-general of

IFAPA.

Ferro alloys are considered a part of the core sector under the ministry of steel as

they are crucial intermediates to iron and steel industry. The industry has completed five

decades of manufacturing bulk and noble Ferro alloys. Ferro alloys are used in the

production of steel as de-oxidant and alloying agents. The Ferro alloy capacity in India is

around 3.64 million tones.


Despite the financial meltdown and the market slowdown, the industry produced 2.22

mt of Ferro alloys during 2008-09, a reduction of 5.93 per cent as compared to the

previous year’s production of 2.36 mt.

The eastern region headed the list in producing manganese alloys (61.42 per cent),

Ferro silicon (71.63 per cent) and chrome alloys (83.39 per cent). Production of noble

Ferro alloys registered a reduction of 7.58 percent during the year.

The industry registered lower exports of Ferro alloys in tonnage as compared to the

previous year. However, earnings of exports have increased by 45.43 per cent over the

previous year. The industry exported 849,291 tonnes (902,542 tonnes) of Ferro alloys

during 2008-09.

Imports of Ferro alloys generally increase every year when the customs duty on

Ferro alloys is reduced. According to export-import data of department of commerce, the

import of Ferro alloys was Rs 15,300 million in 2008-09 when the duty was reduced to 0

percent.

Electrical energy is one of the major inputs in production of Ferro alloys. The high

power tariff and the power cut implemented in Andhra Pradesh and DVC area in West

Bengal are hitting the industry badly. Electricity duty, which varies widely from state to

state, creates additional burden.

The impact of power reforms on Ferro alloy producers is difficult to assess, as the

electricity market still seems to be in a state of flux.

Captive power generation for large scale producers of Ferro alloys may hold the key,

though it is capital intensive. A number of Ferro alloy producers are setting up captive

power plants and it is estimated that 1,000 MW capacities is expected to come up in the

next two years.


Minister of steel has announced that the government will make all Endeavour’s to see

that the 124 mt steel capacity projected by the year 2011-12 , is realized by way of policy

facilitation and vigorous co-ordination efforts with the concerned state governments and

the central ministries.

During the current year, the three public sector units — SAIL, RINL and NMDC —

have planned to invest nearly Rs 13 billion in their on-going capex and modernization

projects.

Despite the global meltdown during the end of 2008 and beginning of 2009, it is

estimated that the industry during fiscal 2009-10 has produced 2.38 mt of Ferro alloys, an

increase of 7.20 percent.

IFAPA is much concerned about the domestic availability of manganese ore for

member units, as Steel Authority of India Ltd and Manganese Ore (India) Ltd, the two

public sector undertakings, have formed a joint venture (JV) company SAIL and MOIL

Ferro Alloys Private Ltd, setting up a one lakh tonnes capacity of manganese alloys plant

in Bhilai.

Similarly, MOIL has signed up a JV agreement with Rashtriya Ispat Nigam Ltd for

setting up manganese alloys plant near Visakhapatnam.

Once these plants come in operation, it is estimated that around 60 per cent of

MOIL’s manganese ore would be consumed by the SAIL-MOIL Ferro alloy plant,

MOIL-RINL plant and MEL plant. The industry will then have to depend on 100 per cent

imports of manganese ore.

Orissa Mining Corporation Ltd, the lone producer of chrome ore, is unable to meet

the requirements of the units, and the industry has started importing chrome ore lumps for

blending the material with the domestic availability of chrome ore.


The industry has to import low ash low phos metallurgical coke. With the recent

appreciation in dollar, the imports of Ferro alloys may work out cheaper and increase

from other countries at lower prices.

The government, therefore, should increase the import customs duty to 10 per cent

from the existing level of 5 percent. A uniform power tariff should be fixed for all Ferro

alloy units across the states. It should also remove the Ferro manganese slag and bring

down the customs duty to 0 percent on raw materials.

With the steel production to grow in coming years, domestic consumption of Ferro

alloys is expected to increase. India has the potential to be a major player in the global

Ferro alloy industry in the coming years. It needs to acknowledge market factors and

seize opportunity for Ferro alloys and steel.

The Three Growth Phases – the Steel “Snake” (inverted S-Curve)

World Steel Consumption and GDP Per Capita, 1950-2010

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

7000

50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 125 130 135 140 145 150 155 160

kg steel/capita

$U

S/c

ap

ita

($

19

95

)

20021997

19941989

1983 1979

19751971

1970

1973

1961First and second oil prices and subsequent recessions led to massive light-weighting of steel-containing products

Post war expansion to 1970 led to predictions of seemingless endless growth

Collapse of USSR led to steel consumption collapse in Eastern Europe

Asian crisis

China takes off!

1954

2005

2010

Phase 1

Phase 2

Phase 3


Crude Steel Output Forecast (Million Metric Tonnes)

Indian Crude Steel Production Forecast (Million Metric tonnes)

Mn Alloys Consumption Trends & Forecast for India


1999 2000 2001 2002 2003P 2004F 2005F 2010F

789 849 851902

950 1019 10171180

125 129 152 182 215 251 262344

World China

34.30

36.40

38.50

40.90

43.30

45.90

48.40

51.1053.90 62.82

FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14

498382361

337325308296

2000 2001 2002 2003P 2004F 2005F 2010F

Raw materials

Raw materials viz. Mn Ore , Cr Ore Quartz, Fluxes are available in India. However, Indian Mn Ore is predominantly low grade(~45%)


45%

35%

17%

2%

Low Medium High

Company Profile

My training organization, i.e. SOVA ISPAT ALLOYS LTD. (SIAL) is situated at

Durgapur (West Bengal). Its present capacity is 26 MVA. And since June, 2000 it has

been producing Ferro Alloys, specially Ferro Manganese and Silico Manganese. It is one

of the leading manufacturers in Eastern India who are regularly exporting to Japan,

China, Singapore, Italy, Chili, South Korea & Bangladesh apart from Indian Clientele

like TISCO, SAIL, RINL, IISCO, Jindal Steel & many others. It got the best Exporter

award amongst the North Eastern States for 2004-05 & 2005-06. Over the years,

Durgapur (WB) units have grown with a proven track record by supplying

uncompromised quality material and obviously, confidence of customers Banks through

regular transaction and payments has been obtained beyond doubt.

Sova Ispat Alloys Ltd. has got accreditation of ISO 9001: 2008 from DNV

INFRASTRUCTURE

Total Area : 9 Acres

3 Nos Submerged Electric Arc Furnace of total 26 MVA capacities. Furnaces are

lined with high Alumina Fire Bricks with Carbon Paste Electrodes. Power obtained from

The Durgapur Projects Ltd at 11 KV level.

Raw Material: For Ferro Alloy Furnaces : Manganese Ore, Rich Manganese bearing

slag, Dolomite, Quartzite, Fine Coke (dry), Iron Chips and Mill Scale are utilized. Proper

blend is maintained through Micro Processor Batch Weighing System and controlled

through EMR feeders.


The Units are equipped with dust precipitation system with bag filters to maintain the

statutory solid waste PPM level in the effluent gas. Obnoxious gases in the final

discharge is strictly maintained by proper selection/blending of raw materials and correct

smelting process in the furnaces thus ensuring the plant to be eco friendly.

Sizing/Bagging/Dispatch: After one and half hours of cooling into the Cast Iron moulds,

the solid metal is stripped off. Broken to pieces as per size & packed in nylon bags

weighing 25 Kg to 50 Kg. The bags are ready for dispatch which are loaded in customer's

trucks and finally weighed in computerized weighing machine.

Picture: - Ferro Manganese Picture: - Silico Manganese


CHAPTER-2

ORGANIZATION STRUCTURE &

FUNCTIONAL DEPARTMENTS


Production Department

Structure of Production Department


ED/GM(Project & Production)

DGM (Production)

Manager (Elecrical)

Manager (Mechanical)

In-Charge (Furnace)

Shift In-Charge

INTRODUCTION

In this industry a wide variety of FeMn (Ferro Manganese) & SiMn (Silicon

Manganese) are prepared in the S.E.A.F (Submerged Electric Arc Furnace) which is

further used in the manufacture of Steel.

Overview of High Carbon FeMn process

High Carbon FeMn is produced industrially in electric arc furnaces, where the energy

is supplied by electric energy, or in blast furnaces, where the energy is supplied by

carbon combustion. The optimal properties of the raw materials are almost the same, as

are the chemical reactions. The following only discusses FeMn production in the electric

arc furnace. The raw materials for the production of HC FeMn may be divided in the

following groups:

Mn sources which will mainly be Mn ores. There are also some by-products,

containing large amounts of manganese oxides that are circulated into the furnace.

Carbon sources: - It can be obtained mainly from coke oven plant. The carbon

sources could also be coal. This is mostly a matter of price and cost.

Flux agents are added to obtain certain slag characteristics, such as a specific

viscosity. Dolomite or limestone is frequently used to increase the chemical

activity of MnO to obtain a higher Mn yield. However, this will increase the total

amount of slag which must be taken into consideration.

As the raw materials move down in the furnace they will gradually be heated in a

reducing atmosphere.


Overview of SiMn process

SiMn is produced is industrially produced in electric arc furnace where the energy is

supplied by carbon combustion to a low content as compared to the above said process.

The raw materials are the same as above which may further be divided in the following

groups:

Mn sources mainly used as Mn ores are circulated into the furnace.

Carbons sources especially coke obtained from.

A flux agent such as Dolomite is used to obtain better fluidity of slag. This will

increase the amount of slag content which will be which being lighter will be

drained out through the tap hole.

S.E.A.F (Submerged Electric Arc Furnace)

The Production Process is stated here under:

Ferro Alloys furnaces are powerful electro thermal device capable of producing high heat

concentration which is generated by resistance of the charge initiate chemical reactions

for smelting of ore bodies in the submerged arc furnace in presence of carbonaceous and

reductants.

All the manganese alloys such as Ferro manganese & Silico manganese are being

produced by them in a submerged electric arc furnace with low voltage & high current

operation from a mixture of manganese ore, dolomite, quartz, high manganese slags &

other reductants with the help of raw material handling system. In the furnace, charge is


preheated, semi fuse and fusing stage, melting of alloy and slag and family trapping of

alloy and slags.

The manganese alloys are broken into pieces and sized before dispatched to the

customers. The slag is dumped at the slag yard. The slag of Ferro manganese is used in

producing silico manganese and therefore it is heaped into proper place after breaking it

into proper sizes.

Picture: - Control Room Picture: - Tapping

Picture: - Separation of Alloy and slag after tapping


Laboratory Test

SIAL having well equipped laboratories for sampling & chemical analysis of raw

materials as well as finished products, raw water, cooling water and softener. The

laboratory tests are done according to quality content of the raw materials however;

sometimes it varies according to the customer’s specifications. The slag obtained from

the furnace is separated from the metal and afterwards a slight amount of slag and metal

are taken to test the exact percentage of the raw materials. But the slag test is more

important than the metal. The percentages of the raw materials are as follows:

SiMn

Metal: -

Mn – (60-65) %

Si – (15-16) %

C – 2 % (Max.)

S – 0.05 % (Max.)

P – 0.30 % (Max)

Slag: -

MnO – (10-14) %

Sio2 – (35-40) %

CaO – (12-14) %

MgO – (6-8) %

Al2O3 – (18-20) %

FeO – 1% MAX

FeMn

Metal: -

Mn – (70-75) %

Si – 1.5% (Max)

C – (6-8) %

S – 0.05 % (Max.)

P – 0.35 % (Max)

Slag: -

MnO – (30-35) %

Sio2 – 30 %

CaO – (11-12) %

MgO – (6-8) %

Al2O3 – (11-14) %

FeO – 1% MAX


Ash: - Sio2 Coal or COKE moisture Al2O3 V.M Fe2O3 Ash CaO F.C MgO

Equipments : Laboratory is equipped with:

Different types of sieves.

Hot air oven

Combustion furnace with transformer

Stronhlein apparatus for carbon determination

Chemical balance

Distillation apparatus along with distilled water tank

Two nos. of muffle furnaces where 1100ºC temperature can be attained.

Hot plate and Platinum crucible with lid.

.

Quality Norms :

Plant produces strictly as per the standards set by Bureau of Indian Standards.

High Carbon Ferro Manganese as per IS-1171:1988 and

High Carbon Silico Manganese as per IS-1470:1990

Sova Ispat Alloys Ltd. has got accreditation of ISO 9001: 2008 from DNV.

Strict adherence to selection of quality raw materials, process parameters, timely

delivery, after sales service and customer satisfaction are the buzz words in achieving

quality in all the products of Sova Ispat Alloys Ltd.

A systematic overview of handling of Raw Materials


1. Raw Material feeding in G.H (Ground Hopper).

2. Belt for feeding Shuttle conveyor.

3. Belt for feeding DB (Day Bins).

4. Day Bins for feeding WH (Weigh Hopper).

5. Weigh Hopper which consists of load cell.

6. Belt for feeding Skip Hoist bucket.

7. Skip Hoist for feeding Trolley bucket.

8. Trolley.

9. Different bucket.

10. S.E.A.F (Submerge Electric Arc Furnace).

Production Process Flow Chart


Human Resources Department


Metal Sand + Slag

Granulation & Disposal

Weighing

Sizing

Packing

Ready to sale

Zigging

Mn or Si ore

Flux (Dolomite) Reducers (Coke & Coal)

S.E.A.F

After automatic weighing & Batching

Electricity

Slag

Remelt

Metal

Structure of HR Department


Director

Personnel Manager

Security Officer

Personnel Officer

SIAL’s Human Resources philosophy is based on dignity of work, fostering a culture

of learning, meritocracy sans bias of any kind and commitment to highest standard of

safety at the workplace.

SIAL has always invested in people and believes in creating an environment

where people are valued as individuals and are given equal opportunities for achieving

professionals and personal goals. Consistent and clear HR practices, participative

management, excellent welfare activities have made the company one of the most

preferred employers in the Ferro Alloys industry. The role of HR in SIAL is to be a

‘Change Agent’ of the organization in order to align people & processes to the

Company’s strategic objectives. The HR focus is to make change seamless and to ensure

“CHANGE, BEFORE CHANGE CHANGES YOU” (a succinct slogan an internal

competition in change Awareness).

Work Culture:

Driving the growth of the SIAL are 250 and more committed employees. The

diversity of location, language and culture blends seamlessly into a common work ethos,

which hinges on fostering excellence, recognizing and rewarding entrepreneurship. SIAL

believes in empowerment, delegation and calculated risk taking ongoing endeavor is to

create an organizational ambience where talent can bloom. To do so, they strive to make

the workplace a source of creativity, innovation and one of that makes work meaningful.

Employee Communication:

The Human Resources Department handles employee’s communication. An

employee may have certain question, queries, complaints, suggestions and ideas that they

would like to share, this is possible through employee-employer communication kinship,

offered in this company. Communication is given a high priority and this is so because

they consider it is necessary to remove barriers the intra-organization flow of

information.


Open Door Policy:

An employee of the company has freedom to go through and voice their perceptions,

suggestions and any matter that are relevant to them and their job. Employee active

participation is needed and appreciated to ensure that an open and free exchange of

communication exists.

Role of Supervisor:

Supervisor is the first source of information, advice, help, encouragement and

training to any employee in the organization. He is the person who is directly responsible

for assigning, directing and reviewing of work. An employee is free to air their views

about performance and suggestions to employee supervisor for a suitable response.

Employer-Employee Relation:

SIAL believes that people are principal assets. They are the one who create

everything that’s valuable to the company. All they need is the platform to do so. SIAL

believes in taking their people along them as they forge ahead. Care and concern for

fellow-employees are evident everywhere. They take care of the quality of work

delivered as well as the environment in which it is executed.

Discipline:

The company believes in maintaining a very high level of organization discipline by

synergizing personal discipline with technology discipline.

Accommodation:

SIAL has staff dormitory in his factory premises, but family is not permissible.

Where all the facilities (including foods) are been provided to the employees.


Attendance:

Being at work regularly and on time is an important part of the overall job

performance. If illness or an unexpected problem prevents an employee from coming to

work, then they have to contact the supervisor at the earliest possible, on the first day of

absence. For extended illness, a doctor’s certificate must be provided.

Paid Holidays:

Holidays are given on the calendar year system, which is from April to March.

Employees are eligible to avail 10 paid holidays in a year. The list of holidays for the

year is released by the end of March every year.

Leave:

Casual Leave (CL)

Sick Leave (SL)

Privilege Leave (PL)

Maternity Leave (ML)

Recruitment:

The methods used by SIAL to recruit people are various placement consultancies,

news papers advertising & internal sources.

Training and Development:

Training & development is high-focus human resources initiative. An employee

is given ample opportunities to learn and grow. The challenge is to identify these skills.

Also, with speed being of essence need to continuously learn and perform.


Probation:

Any new recruit who joins the company will be put on a probation period for 6

months. The probation period is to facilitate assessment of the new entrant’s competence

and suitability. The period of probation would be mentioned in the appointment letter.

On completion of production performance is evaluated and, if it is found

satisfactory, confirmation is granted. However, should the performance be found

unsatisfactory, probation period mat be extended in the sole discretion of the

management.

Resignation:

An employee ceases to be in employment once his submitted resignation has been

accepted and he is relieved from the company services. An employee on probation may

resign from the company by giving sufficient notice of 24 hours while a confirmed

employee will have to give a notice period of one month. He will be relieved on

completion of notice period as per letter of his appointment or standing order of the

company as applicable. The resignation letter should be submitted to the Personnel

Manager through the functional heads.

Performance Appraisal:

People come first in the new business paradigm. The success of an organization

essentially depends upon the effectively harnessing and utilization of this resource. It is

imperative of an organization to constantly nurture people and have their capabilities for

optimal performance.

Performance evaluation aligns the organizational objective with the individual’s

performance and bridge the gap between the two through consistent performance,

planning, review and development.


Procedures for Recruitment:

To fill up the vacancies as approved by the management two sources will be

identified such as

a) Internal source

b) External source

a) Preference will be given for internal source by tapping the potentials of the

employees possessing multiple skills who can be redeployed.

b) In case of non-redeployment of the existing employees, external source will be

adopted either by approaching placement consultants, advertisement etc. On receipts

of application through external source, through screening will be done at the

department. The short listed candidates will be called & interviewed by a committee

consisting of respective HOD/section Heads & one representative from HR

department. The selection will be made based on the overall performance of the

candidate and as per the company’s requirement.

The recommended candidates for selection by the committee will be put through

final interview with JMD & CEO offer letters will be issued subject to their medical

fitness duly certified by their medical superintendent.

The new employees will be issued with a joining circular welcoming him to the

company along with an advice to attend half day safety training programmed.

Presently two types of registers are being maintained.

A) Offer issued register B) Duty joining register


Finance Department

Structure of Finance Department


Director

Manager (Finance) [CA]

Jr. Manager (Finance)

Sr. Accountant (Excise & sales

Tax)

Sr. Accountant (Finance & Bill)

Finance means acquisitions of the fund and proper utilization and allocation of funds

in the proper way. Finance plays a pivotal role in the development of any business. Thus

development of any business is the major and important function of the management. The

following are the different function of the finance department:

Central Finance and Accounting Section:

In the central account section all the finalization of accounts takes place. In the

section balance sheet, P & L A/C, P & L Appropriation and schedule of each time are

prepared. It helps in knowing the financial positions of the company.

Accounts Payable section:

In the section following modes of payments are made, stores and space payment,

raw material purchase payment, foreign purchase payment, contract bills payment,

transporters payment, open purchase and miscellaneous payment, job order and work

order payment, worker salary payment.

Sales Accounts Section:

The main functions of this section are preparation of sales account. When

customer approaches to marketing department for product, marketing department will

discuss with the sales account section about the price. Here the sales are made both in

advanced and on credit. To prepare sales account, following reports are to be prepared:

Order acceptance, price approval, purchase order, dispatch advice, invoice etc.

Cost Section:

Cost sheet are prepared as accordingly production process. The operation cost sheet

is prepared per unit cost in which quantity, price, qualities are stated. It will reveal cost of

production and it also helps in preparing the cost sheet for the future i.e. for budgeting.


Accounting Policies

General:

The financial statements are prepared under the historical cost convention, on the

basis of a going concern and as per the applicable accounting standards. The company

follows the mercantile system of accounting and recognizes income and expenditure on

accrual basis expert the liability for customs duty in respect of the capital goods lying in

the bonded premises and those with significant uncertainties.

Valuation of the Inventories:

a. Raw materials, production consumables, construction materials stores & spares

are valued at lower cost, computed on the weighted average basis and net

realizable value. Obsolete, defective, unserviceable and slow and non-moving

stocks are duly provided for.

b. Finished goods and working progress are at lower of cost and net realizable value.

Cost for this purpose includes direct materials, direct labour and excise duty

appropriate overheads including freight cost up to the ports in respect to the

finished goods meant for the exports.

Fixed Assets and Depreciation:

a) Fixed assets are stated at cost of acquisition or construction less depreciation.

b) Depreciation on the assets is prompted on the straight-line method at the rates and

in the manner specified in the schedule XIV to the company act, 1956.


Income Tax:

Provision for the current taxes is made on the basis of the estimated taxable income

for the current accounting year in accordance with the income tax act, 1961. The deferred

tax for timing differences between the book and tax profits for the year is accounted for,

using the tax rates and laws that have been substantively enacted as in the balance sheet

date. Deferred tax assets arising from timing differences are recognized to the extent

there is reasonable certainty that those would be realized in the future.

Research and Development Expenditure:

Revenue expenditure is charged to the profit and loss account and capital

expenditure is added to the cost of the fixed assets.

Contingent liabilities:

Liabilities which are material and whose future outcomes cannot be ascertained

with reasonable certainly are treated as contingent and disclosed in the notes to the

accounts.


Marketing Department

Structure of Marketing Department


Director

Manager(Store)

Sr. Store Assistant

Manager (Marketing)

Jr. Manager (Marketing &

Despatch)

Supervisor(M & D)

Manager (Purchase)

Purchase Officer

Marketing Plan at SIAL:

Marketing planning is formulated mainly by the top level management people and

senior manager follows the decision regarding planning.

In SIAL before marketing planning the top level management makes a business

plan by considering the annual demand and production capacity and then year target plan

and monthly plan.

Objective of Marketing Plan:

Objective are: -

To achieve set standard

To enjoy profits

To satisfy customers as it is buyer market

According to SIAL the benefits of marketing plan are: -

To encourage innovation and creativity.

Marketing planning improve competitive strength.

Marketing planning helps to meet the demand.

It minimizes the risk and uncertainty.

Marketing planning focuses attention on objectives.

Marketing planning helps to reduce the cost of production.

Marketing planning helps the manager to adopt strategies according to its

changing market opportunities.

Marketing planning helps the manager to take decision.

Marketing planning facilitates control.


Marketing arrangement of SIAL

The strings of the management of the company are in the hands of the Board of

Directors who reports to the Director (Marketing).

Senior Director (Marketing) directly controls the marketing network of SIAL. The

company has got systematic documentation procedure to control the dispatch activity.

After the production, the company sends to its plant regarding consumer

requirements, quality and quantity details, and transportation facility and delivery date to

dispatch department for dispatch the goods at correct time.

The material is loaded into truck or rail without any variation of quality. The senior

officer also checks this at the time of loading.

Domestic Business & International Market

Any firm’s domestic of international business deepness upon suitability and profitability.

Some may stick only domestic business and some may go for international business

through export, licensing, franchising, joint venture, direct investment, turnkey contracts

etc.

Overseas users in

Italy, Brazil, Australia, France, Chili, China, Japan, South Korea, Singapore, Bangladesh

Domestic clients like:

� Durgapur Steel Plant, Durgapur

� Alloy Steel Plant, Durgapur


�

Rourkela Steel Plant, Rourkela

� Rashtriya Ispat Nigam Limited, Vizag

� Tata Iron & Steel Co., Jamshedpur

� Jindal Strips Limited

� Rim Jhim Ispat Limited

� Essem Enterprise

� Prakash Industries Limited

� Super Smelters Limited, Durgapur

� Metalex India

� Harsh India

� Maithon Alloys Limited

� Mahabir Ferro Alloys Limited, Durgapur

� Usha Martin Limited and many others

Marketing Mix of SIAL

Products Strategies : -

Because of high demand in the present Market, Plant is producing High Carbon Ferro and

Silicon Manganese & Low Carbon Ferro Silicon.

Size varies from 25 mm to 125 mm. but customized and economic size also can be

supplied.

After the sales the services provided by the SIAL are pretty good and it may be either

major customer or small customer.


Pricing Strategies : -

Payment Period : - SIAL is allowing a period of 30 days as payment period to its customers.

Credit Term : - SIAL has certain credit terms like letter of credit and payment of Rs. 100 towards the LOC fee etc.

Place Strategies : -

Channels of distribution : - An industrial goods manufacturer can use its sales

force to sell directly to industrial customers or it can industrial distributors,

who sell to the industrial customers.

Coverage : - SIAL has covered eastern part of the Indian market fully, a part of

the central regions and some parts in northern areas also.

Location : - It has been located in Durgapur, Burdwan in the state of West-

Bengal. The project site is at Angadpur spread over 9 acres of land. It has

located 7.5 kms from Durgapur and 75 kms away from Burdwan. It has good

rail connection to major port such as Kolkata, Haldia, and Orissa, which are

200-300 kms away from plant site.

Transportation : - The plant is located at the well transportation facilities area

through road and rail. The rail lane is connected to Asansol, Durgapur,

Kolkata, Orissa and many more places not only that but also connected with

Kolkata, Haldia and Orrisa seaports. The branches are located in major cities

in east.

The transportation mode of SIAL is Roadway and Railway. For

Export orders it is send through waterway by costal shipping.

SIAL has chosen roadway because of following reasons: -

Cost is low compared to others

More accurate


It eliminate the terminal cost

Roadway are very convenient to both manufactures as well as buyers

SIAL use truck as main vehicle for transportation

SIAL basically prefer for road transport when the order is less than

2000 tons

SIAL uses Railway as mode of transport when the order is more than

2000 tons, because it is cheaper than road transport

Promotion Strategies : -

Sales Promotion : - Sales promotion is a key ingredient in marketing

campaigns sales promotion consists of diverse collection of incentive tools,

mostly short term, designed to simulate quicker as greater purchase of

particular product as services by consumers on the trade.

SIAL adopts sales promotion techniques: -

SIAL is going provide price off, a straight discount off the list

price on each case purchased during a stated time period.

The company developed customer sensitiveness and it provides

incentives and discounts on regular and bulk purchase.

Sometimes SIAL provides transport allowances to buyer.

Sales Force : - The sales force people are working tremendously collecting

feedback from its customers. Encouraging customers to buy its products,

there people are in the branch officers only and not from the site.


CHAPTER-3

SWOT ANALYSIS, MISSION,

VISION, GOALS & OBJECTIVES


SWOT Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is the first

stage of planning and helps marketers to focus on key issues. SWOT stands for

strengths, weaknesses, opportunities and threats.

Strengths and weaknesses are internal factors.

Opportunities and threats are external factors.

STRENGTHS: -

1. SIAL has good reputation in market. This is the result of experience of around 10

years in the alloys industry.

2. Production Quality is the strength of the SIAL.

3. Enjoys strong technical R&D capabilities.

4. SIAL has good marketing mix, which helps to market their product easily.

5. Plant location is another advantage for SIAL.

WEAKNESSES: -

1. There is lack of promotional activities, not using latest promotional media such as

online promotion etc.

2. Job satisfaction is another Weakness at SIAL.

3. Infrastructural development is not so good.

4. Problem with efficient warehousing and out bound transportation.


OPPORTUNITIES: -

1. Located in Durgapur-Burdwan region, a good industry belt.

2. Easy access to the major parts of Kolkata, Haldia and Orissa.

3. Recent growth of the alloys industries in Indian market.

THREATS: -

1. Improper policy of Central Government of ore (kahnija sampad) distribution.

2. Insufficient power supply of West-Bengal Govt.

3. Tough competition from the local players.

4. Price war may result due to close competition and price being the main constraint

in alloys marketing.

VISION:

Be one of the market leading providers of Ferro alloy and growth by creating value for

each of our Customer. By constant research, innovation and development bring the better

product for the customer. We will accomplish our Vision through our commitment to

strategic growth, outstanding service, and environmental care.

MISSION:

Our Mission is to utilize the available raw material at optimum efficiency by innovation

and technology. Delivering the best product without disturbing the environment.

Maximum utilization of our byproducts and industrial waste.


GOALS:

Profit maximization.

Creating new products using byproducts of industry.

To set the benchmarks for others to follow in Safety & Environmental Care.

Expanding Product Horizon.

OBJECTIVES: SIAL has defined its objectives for succeeding in its mission as follows:

PROFITABILITY : To manage the assets and human resources, in the most

effective and efficient manner, to ensure reasonable return on investment and to

maintain adequate liquidity.

GROWTH : To achieve reasonable and consistent growth and to generate

resources for developing the infrastructure and expertise in the Company.

DEVELOPMENT : To enrich its design capabilities and to improve

manufacturing process.

ORGANIZATIONAL ENVIRONMENT : To develop and maintain an

organizational environment for initiative, innovation and productivity, and also to

ensure a fair deal to the employees with humane approach.

BUSINESS DEVELOPMENT : To generate adequate profitable Business by

utilizing the existing resources to the maximum extent.

OBLIGATION TO SOCIETY : To conduct business in the most ethical

manner, and with legal standards, in order to generate a good social

environment.


CHAPTER-4

FINDINGS, SUGGESTION

AND CONCLUSIONS


Findings

Lack of structured policies regarding Mining has affected the Industry.

At SIAL products are not reaching to the customers on time because of its

promotional policies.

The relation between dealers and the company is not good.

SIAL is not giving good training to its employees to handle their job

Insufficient power supply of West-Bengal Govt.

There are lots of opportunities to achieve highest level of safety.


Suggestions

Ore distribution should be in a proper way so that every individual organization

enjoys a good position in their industry.

SIAL has to promote their product in market and also change their promotional

policies such a way so that every customer gets the right information about their

product.

Communication is only way to handle a relation, so they have to communicate

with dealers to maintain a good relation.

Training is a part of organization, we know that training make a person better to

handle critical situation and also handle expensive equipments. SIAL has to go

further one step ahead to think about such training program for a better work

life in their organization.

Power supply is another problem for SIAL. It’s not in their control, so if it’s

possible to set up their own power production plant then only they will be free

from insufficient power supply problem. But it’s not a matter of joke, because

it’s cost very high.

“Prevention is better than cure”, we know this, but in real life we forget most of

the time. In alloys industry safety is the first thing for the employees and SIAL

has to prevent their employee’s life through better safety measure.

Conclusion


This training program with SIAL deal with the study of organization’s functions of

the entire department, situated at Durgapur, West-Bengal. This program helped me to

know the industrial environment it gave me real working experience. It was a great

experience in the company. According to my experience it is a well built organization as

a small scale industry with great infrastructures, better facilities, and well organized Eco-

friendly environment with good safety measure provided for the workers.

The company management helped me a lot by providing important information then I

came to know to know about the different department, various kinds of products they

manufacture.

SIAL has always been showing its hospitality to all the students, visitors, employee etc.

their key personnel treated me as their colleague and provided with all the necessary

information that helped me a lot to complete this project successfully.

A team of skilled professionals who take complete responsibility in alloys manufacturing

and this team will travel beyond new horizons of alloys industry and set benchmarks for

generations to come.

Finally I would like to conclude that it was a great experience in the company with a lot

of learning experience.


CHAPTER-5

BIBLIOGRAPHY


Bibliography

COMPANY’S OFFICIAL WEB-SITE: http:\\www.sovaispat.com

SEARCH ENGINE: http:\\Google.co.in

MARKETING MANAGEMENT: Philip Kotler

HUMAN RESOURCE MGMT : Dr. Ahwathappa

FINANCE : Company Internal source


an organization study on alloys industry

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