finance in sail

19
Steel authority of india limited (SAIL) Salem by , Jayaram.S

Upload: jayaram-s

Post on 23-Jan-2017

18 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: FINANCE IN SAIL

Steel authority of india limited(SAIL) Salem

by ,Jayaram.S

Page 2: FINANCE IN SAIL

Introduction of Company :

• Steel Authority of India Limited (SAIL) is the leading steel-making company in India.

• It is a fully integrated iron and steel maker, producing both basic and special steels

for domestic construction, engineering, power, railway, automotive and defence

industries and for sale in export markets.

• SAIL is also among the seven Maharatnas of the country's Central Public Sector

Enterprises. SAIL manufactures and sells a broad range of steel products, including

hot and cold rolled sheets and coils, galvanised sheets, electrical sheets, structural,

railway products, plates, bars and rods, stainless steel and other alloy steels.

• SAIL's Consultancy Division (SAILCON) at New Delhi offers services and

consultancy to clients world-wide.

• SAIL's wide marketing spread ensures availability of quality steel in virtually all the

districts of the country

Page 3: FINANCE IN SAIL

Ownership and Management :

• The Government of India owns about 80% of SAIL's equity and retains voting control of the Company. • However, SAIL, by virtue of its ‘Maharatna’ status, enjoys significant operational and financial autonomy.

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

Page 4: FINANCE IN SAIL

Salem Steel Plant:

• Salem Steel Plant, a special steels unit of Steel Authority of India Ltd., pioneered the supply of wider width stainless steel sheets/coils in India.

•The plant can produce austenitic, ferritic, martensitic and low-nickel stainless steel in the form of coils and sheets with an installed capacity of 70,000 tonnes / year in Cold Rolling Mill and 1,86,000 tonnes / year in  Hot Rolling Mill.  • In addition, the plant has country's first top-of-the-line stainless steel blanking facility with a capacity 3,600 tonnes / year of coin blanks and utility blanks / circles.

Page 5: FINANCE IN SAIL

Plant and facilities:

• Process flow chart• Environment management• Captive mines• Blast furnace• Steel melting shops• Rail and structural mill• Mills• New products• The cutting edge processes• Quality assurance

Page 6: FINANCE IN SAIL

Products :

• Rails - R52 Kg/m & R60 Kg/m ; UTS 880 N/mm2 rails as per IRST-12/96 specifications , Euronorms and international standards. • Thick web asymmetric rail Zu 1-60 • Beams - 600,500,450,400,350,300 & 250• Channels - 400,300 & 250• Angles - 200 & 150 • Crossing sleeper• Crane Rails - KP80, 100,120 & 140.• Bhilai is the sole supplier of the country's longest rail tracks of 260 metres.

Merchant Mill:• Capacity - 5,00,000 Tonnes

•Wire Rod Mill :

Capacity - 4,20,000 T.

•Wire Rods (Plain, Electrode Quality & TMT) in 5.5, 6, 7, 8 & 10 mm plain and ribbed, and 12 mm plain in coil form8, 10, and 12 mm TMT.

Page 7: FINANCE IN SAIL

New Products:

•High Corrosion Resistant & Earthquake Resistant •Rock bolt•12mm Earthquake Resistant •36mm Earthquake Resistant •Cr-V alloyed •Ultra-High strength SAIL •Low-C, Cu-bearing Structural Steel Plate for Corrosion Resistant Application•Thicker Plates (60mm) with ultra low temperature •High Tensile Weather Resistant Plates •High Tensile SBQ quality plates•Cr-Mo alloyed IS 1570 Grade 53mm Round Bar for High Temperature Application •Thicker plates (115mm) in Structural Quality with guaranteed Ultrasonic soundness

Page 8: FINANCE IN SAIL

The Cutting Edge Processes

Steel Making:• Vacuum Arc Degassing: This unit ensures production of low sulphur steel with lower gas contents.

• Precise control of casting temperature, composition and improved steel cleanliness is achieved.

• RH Degasser(2nos): A 130 T capacity RH (RuhrstahiHeraus) Degassing Unit was installed mainly to remove hydrogen from rail steel.

• Ladle Furnace(2nos): It is installed to process steel to reduce diversion due to chemistry and to process cold heats or return heats.

• The 130 T furnace also has benefits like reduction in tapping temperature of BOF, improvement in lining life of BOF, etc. It acts as a buffer between BOF & CCM for holding the heats, reduce consumption of ferro-alloys, carbonisers and deoxidiser and produce a cleaner steel.

Page 9: FINANCE IN SAIL

Desulphurisation Unit :  This has been installed to reduce hot metal sulphur for better steel-making.

Finishing Mil:

• On line Ultrasonic testing machine in Plate Mill.• Mandatory on-line testing of API grade plates.• 100% scanning and edge testing of all plate surfaces.• Automatic thickness gauge and HAGC profile control• Better quality assurance• Better dimensional• Improvement in yield by 2%.• Computerised tracking of plates in Plate Mill• Plant-wide fiber optic cable networking.

Page 10: FINANCE IN SAIL

SWOT ANALYSIS :

• A SWOT analysis must first start with defining a desired end state or objective.

• A SWOT analysis may be incorporated into the strategic planning model.

•A SWOT item that produces valuable strategies is important.

• The usefulness of SWOT analysis is not limited to profit-seeking organizations.

• Examples include: non-profit organizations, governmental units, and individuals.

• SWOT analysis may also be used in pre-crisis planning and preventive crisis management.

• SWOT analysis may also be used in creating are commendation during a viability study.

Page 11: FINANCE IN SAIL

STRENGTHS:

• Financial Resources also acts as a strength as it can use Govt funds for ventures.

• Sales Channels also is a strength as it uses all possible channels for promotion and Sales.

• Another Strength is the (product Steel) is core in nature and related to almost all development and Infrastructure activities.

• Profitability is another strength as SAIL records as to unding profit figures in spite of providing social benefit and subsidies to its clients.

• Attributes of the person or company that is helpful to achieving the objective.

Page 12: FINANCE IN SAIL

WEAKNESS: • Attributes of the person or company that is harmful to achieving the objective.

• Competitive Vulnerability is another weakness as competitors include private players with better quality Man power, strategies and policies.

• Another weakness is production of a single vertical(Steel) and no diversification.

• Also a major Weakness is completely answerable to the Central Govt. and hence exposed to corruption and mis-management

Page 13: FINANCE IN SAIL

OPPORTUNITIES:

• External conditions that is helpful to achieving the objective

• However SAIL has certain opportunities as it is affiliated to the Central Govt. of India and hence expansion and growth is possible

• SAIL also can adopt globalisation with ease using Govt. Support also SAIL being financially sound can undertake merger and acquisition projects with weaker  Counter parts.

• It can also involve in production of forward integration products and by-products apart from its core product(Steel) with the help of its healthy brand image.

Page 14: FINANCE IN SAIL

THREATS:

• External conditions which could do damage to the business's performance.

•Threats would include change in Govt Policies and Economy trend which can have a direct impact on the functioning of SAIL.

•Also emerging and existing private sector competitors who can steal market share.

•Also late implementation of technology and modern machinery as compared to counterparts can pose a potential threat.

Page 15: FINANCE IN SAIL

CSR Activities:

SAIL CSR Policy

•SAIL recognizes that its business activities have direct and indirect impact on the society.

•The Company strives to integrate its business values and operations in an ethical and transparent manner.

•The Company is committed to continuously improving its social responsibilities, environment and economic practices to make positive impact on the society.

Page 16: FINANCE IN SAIL

Guiding Principles:

Toward this commitment, the Company shall:

• Create a positive footprint within the society to make a meaningful difference in the lives of people by continually aligning its initiatives to the goals for sustainable development.

• Maintain commitment to business & people for quality, health and safety in every respect.

• Undertake ethical business practices across the supply chain.

• Make positive impact on the environment and promote good environmental practices.

• Promote equality of opportunity and diversity of workforce throughout its business operations.

Page 17: FINANCE IN SAIL

SAIL CSR Thrust Areas:

• Since inception, SAIL has been contributing greatly in the socio‐economic development of the areas in and around its plants and units.

•Company has taken specific initiatives in the field of environment conservation, health and medical care, education, women’s upliftment, potable drinking water availability and ancillary development.

•By systematically addressing a gamut of issues such as health and medical welfare, education, access to water, sanitation, power and roads, women's empowerment, generation of employment, electricity, sports, culture, etc., at each of its plants and units, SAIL has contributed immensely to the economic development of its peripheral areas.

•By partnering creatively with small, local entrepreneurs, NGOs, state government and the centre,

•SAIL has ensured that the benefits arising out of its activities actually reach the grassroots level an not merely remain on paper.

Page 18: FINANCE IN SAIL

•Under Peripheral Development various activities are being undertaken around the plants/units upto a radius of 16 Kms.

•Several socio‐economic surveys reveal considerable benefits emanating from SAIL’s efforts.

•Programmes are undertaken by each plant in close coordination with the State and District administrations as well as the local Panchayats, social organizations and people's representatives.

•All plants/units are making special efforts to initiate new projects in the area of road connectivity, construction of bridges/culverts, access to improved water sources, etc.

Page 19: FINANCE IN SAIL

Conclusion:

The importance of human resource in any organization cannot be overstressed. It is concluded from the present study that, SAIL has recognizes the potential of human resources in providing competitive advantage and considers its employees as most valuable resource. The company has achieved its level of excellence through investing in its human resource, which are at the back of every activity, every technology and every innovation. However, it was found that the regular super annulations, over the years, have resulted into skill depletion largely in the technical areas. Therefore it is suggested to the company that beside technological up gradations and modernization, the company should also make efforts towards competency development. The company should continue to work for developing capabilities and realization of best potential of its people. The company should also take continuous efforts for active participation by employees, implanting a conducive ambience for exhibiting creativity and innovation by employees and ensuring a climate that reflects synergy and contagious enthusiasm has been at the core of HR initiatives and interventions. Thus I conclude my project herewith the esteemed concern.