real project[1].,............,finanal

Hospet Ispat Pvt Ltd.

Chapter- 1

INDIAN ECONOMIC SCENARIO

In India it is known to at most everybody that the morbid recession is

not yet over .the government bodies of different nations all over the world

and even our government are taking many serious measures to accelerate the

economies of their concerned nations .But the subprime crisis impact was so

huge that we have been successful only up to sure level. India is a secular

domestic country .this means, it never gives priority to a specific cast &

creed and the government of India is elected by the people of India.

The growth of any country depends on its economic position the

Indian public and private sector are also developing ,and so, we can say

India is marching forward on its path of development .Although ,the Indian

economy has been facing various problems such as illiteracy ,unemployment

, political imbalance and poverty for many years ,it tried its level best in

developing the science and technology fields .But ,now, because of the

global financial crisis and unstable position of the current share

market ,most of the Indian industries are endeavoring hard for their survival.

In the event of a major US recession, besides a larger hit to Indian

exports, there could be serious second-round effects, as firms scale back

apex and obs. The negative impact on the economy from the financial and

confidence channels would also be powerful

Seshadripuram Institute of Management Studies 1


Manufacturing still going strong: CII Survey: Out of a total of 100

sectors reporting production, 15 reported excellent growth rate of more than

20% and 30 sectors recorded high growth rate of 10-20%. 41 sectors

recorded a moderate growth rate of less than 10% and 14 sectors recorded

negative growth rate. The percentage remained the same for moderate

category while percentage of sectors in negative category showed a slight

decline for the first nine months of the current fiscal year. The percentage of

sectors in excellent category has declined while percentage of sectors in high

growth category has increased.

Recent Growth Trends in Indian Economy

India’s Economy has grown by more than 9% for three years running,

and has seen a decade of 7%+ growth. This has reduced poverty by 10%, but

with 60% of India’s 1.1 billion populations living off agriculture and with

droughts and floods increasing, poverty alleviation is still a major challenge.

The structural transformation that has been adopted by the national

government in recent times has reduced growth constraints and contributed

greatly to the overall growth and prosperity of the country. However there

are still major issues around federal v/s state bureaucracy, corruption and

tariffs that require addressing. India’s public debt is 58% of GDP according

to the CIA World Fact book, and this represents another challenge. During

this period of stable growth, the performance of the Indian service sector has

been particularly significant. The growth rate of the service sector was



11.18% in 2007 and now contributes 53% of GDP. The industrial sector

grew 10.63% in the same period and is now 29% of GDP. Agriculture is

17% of the Indian economy.

Growth in the manufacturing sector has also complemented the

country’s excellent growth momentum. The growth rate of the

manufacturing sector rose steadily from 8.98% in 2005, to 12% in 2006. The

storage and communication sector also registered a significant growth rate of

16.64% in the same year. Additional factors that have contributed to this

robust environment are sustained in investment and high savings rates. As

far as the percentage of gross capital formation in GDP is concerned, there

has been a significant rise from 22.8% in the fiscal year 2001, to 35.9% in

the fiscal year 2006. Further, the gross rate of savings as a proportion to

GDP registered solid growth from 23.5% to 34.8% for the same period.

The economy of India is the fourth largest in the world by GDP

measured on a Purchasing Power Parity (PPP) basis and the twelfth largest

in the world by market exchange rates. Despite robust economic growth,

India continues to face several major problems. The recent economic

development has widened the economic inequality across the country.

Despite sustained high economic growth rate, approximately 80% of its

population lives on less than $2 a day (PPP), more than double the same

poverty rate in China. Even though the arrival of Green Revolution brought

end to famines in India. 40% of children under the age of three are

underweight and a third of all men and women suffer from chronic energy

deficiency.



Chapter- 2

INDUSTRY ANALYSIS: STEEL INDUSTRIES

Steel Industry in India

India is the 7th largest steel producer in the world Steel comprise of

one of the most output of all section of economy. Steel industry is both basic

and a core industry. The economy of any nation depends upon a strong base

of iron and Steel.

Histories have shown that countries having a strong potentiality for

iron & steel products have played a pre-dominant role in advancement of

civilization in the world. Steel is such as versatile commodity that every

object we see in our day-to-day life uses steel either directly or indirectly.

Steel is used in producing small implements, boilers, ships, bridges,

automobiles parts to heavy instruments, current rises heavy structures,

buildings etc., Every where steel is versatile and an indispensable item. The

versatility of steel can be traced to three main reasons.

1. It is the only metallic item, which can be conveniently &

economically produced in required quantities.

2. It has got very good strength coupled with durability &

malleability into thin sheets.

3. Its properties can be changed over a very wide range.



Growth and Development of Steel industry in India

The development of steel industry in India should be viewed in

conjunction with the type & systems of government that had been ruling the

country. However production is signification quantity started only after

1900.

The growth of steel industry can be traced or conveniently studied by

dividing the periods into post & pre independence periods.

By 1950 the total installed capacity for ignorant steel production was

1.5 millions tones & during the independence period there was no significant

development in the steel sector mainly due to apathy of the government.

Only after independence bold steps were taken to develop this sector & the

capacity increased from 2.2 to about 16 million tones by 90’s.

Growth in Chronological Order

1830- Joshwa Marshall constructed the first manufacturing plant at

Protonova in Madras Presidency. But it was financially a failure.

1874- James Lerikkin founded the Bengal iron works. It was passed

over to M/s Martin Company in 1885.

1899- Jamshedji Tata installed the scheme for ISP, which was first in

the country.



1906- Sanchi in Bihar was chosen as the site for Tata iron & steel

company (TISCO). The same place is known as Jamshedpur.

1911- TISCO started production initially with-1000tones per year &

in 2 years the production reached to 5000tones per year & by 1939 it

reached to 15000 tones per year.

1918- Initially TISCO was founded & the Bengal iron & steel

company merged with it in 1926 & it was first registered to manufacture pig

iron for importing it to U.K. and Japan. It started its operation in 1936.

1904-1950- Formation of Mysore Steel Ltd., presently known as

Vishweshwaraiah iron & Steel Ltd., (VISL) at Bhadravathi in Karnataka.

Owing to the pioneering efforts of Sir.Vishweshwaraiah first it produced

charcoal, Pig iron later it started manufacturing Steel in 1939 & after 1945-

adopted electric reduction of iron ore. This industry also started many Ferro

alloys & special steel.

1951-56: In these years mainly agriculture was concentrated. No steel

plan came up. TISCO expanded from 1 metric ton to 2 metric ton per year.

In this era public sector companies were encouraged. Thus Hindustan Steel

Ltd., (HSL) was born on 19th January 1954 with the decision of setting up of

3 Steel plants each with a million-ton per year Majority Steel per year at

Rourkela, Bhillal & Durgapur.

1956-62: The three plants which were started at the end of 2nd five year plan

are:

Plant Location Collaboration Annual Production

RSP Orissa West Germany 7,20000t/yr



BSP M.P. USSR 7,70000t/yr

DSP West Bengal British firm 8,00000t/yr

1961-66: Alloy Steel plant added at Durgapur in 1964. Bokara Steel

plant came into existence by technical collaboration with USSR.

1969-74: Second stage at Bokaro Steel plant was started. License for

many mini steel plants & rolling mills were given permission. Government

has idea of setting up of 2 major steel plants in the south one at

Vishakapatnam & the other in

Karnataka. SAIL for unfair condition in steel industry formed on 24th

January 1975.

1974-79: Bokara with 1.7m/t capacity was started

1978: Expansion of Bhilai &Bokaro. The idea of setting up of major

ISP, took a definite shape.

1979-80: Soviet Union has agreed to help in setting up the

Vishakapatnam Steel plant.

1980-85: Work on Vizag plant started. TISCO was modernize And

there on the industry grew at a faster rate. Now the iron & steel industry are

in boom due to the large requirement overseas from China & other countries.



Chapter- 3

COMPANY ANALYSIS: HIPL COMPANY

ORIGIN OF THE ORGANIZATION

HOSPET ISPAT PVT LTD, Known as HIPL Occupies a leading

position as manufacturer of quality Sponge Iron, Setup in backward reason

of Karanatak in 2004. Now it is running as a small scale industry and a

private company but previously

MISSION

“To produce quality iron and steel product as per domestic and

international market and to achieve and practice in every field. Giving due

un eager to the development of Human resource available in the organization

and to set up an integrated steel plant with latest technologies. Contribute to

nation wealth and ultimately become one of the best ISP in India”

VISION

After commissioning the sponge iron plant, which reduced the

dependability on scrap, HIPL is now concentrating its efforts on reducing

the power costs, which is key element in steel making. Installation of power

plant will enable HIPL to get assured power supply from KPTCL save

operating cost by way of utilizing waste heat from Kiln. HIPL also aims at



expanding the capacity of Integrated Steel Plant to two million tons in

several phases.

OBJECTIVES OF THE COMPANY

Enhance customer satisfaction

Effective planning, provision and utilization of resources

Continual improvement process

Providing training and motivating employees at all levels

Improving reliability of the suppliers

Ensures safe working environment

PROMOTERS

The company that was originally started from Mr. Vinay

Biyani and Mr. Suresh Kumar Lakotia . In April 2007 the company was

occupied by the AARPEE group of mines. Shri R Shranabasaveshwar and

Shri R Prakash are the managing directors being the main Promoters of

Hospet Ispat PVT LTD

ABOUT THE FOUNDER OF HOSPET ISPAT PRIVATE LIMITED

Mr. Suresh Kumar Lakhotia, Chairman and managing Director

(CMD) of this company entered in the Iron and Steel background joining

Bihar Alloys Steels Limited and continued with them up to 1988. He got the

good experience in the said company and step by step but gradually known,

what is Iron & Steel? How this is manufactured? Since than, he has passed



through number of business activities i.e. Trading in Ferro Alloys, Claimed

Petroleum Coke, Fluorspar, Slag Conditioner and EBT Filling material etc.

and manufacturing of Calcined lime, Hydrated Lime, Ferro alloys unit with

in a short span.

Mr. Vinay Biyani, a Chartered Accountant by Profession, having

similar experience in this field since 1997 has extended his hands, then he

became a Managing Director (G.MD) of this company, also added his

thoughts with Mr. Lakhotia and started activities of the company. They have

put up a ‘Coal Based

Sponge Iron Plant’ with 200 TPD capacities at Allanagar (Ginigera) Dist:

Koppal in the state of Karnataka. The production of this plant was started in

the month of November 2004. Apart from this, company’s other activities

are in existence from two locations i.e., God owns/Processing facilities at

Pune in Maharashtra and Dhrangadhra in Gujarat.

The former directors of the company are Mr. Suresh Lakhotia, Mr,

Vinay Biyani, Mr. Champalal Biyani, Mrs. Meena Lakhotia and Ms. Smriti

Lakhotia, having long experience in the steel industry. They sold this HIPL

to present directors Mr. R.Sharanabasaveshwara and Mr. R.Prakash.

PROPOSED ACTIVITIES

Power Plant at Allanagar, Koppal

Index Ion Furnace and Steel Rolling mill



TOTAL MAN POWER

Male Employees 170

Female 4

Total Manpower 174

SOURCE OF FINANCE

State Bank of India, Railway Station Road, Hospet

AREA OF THE COMPANY

At present 107 acres of land is used

FACTORY ADDRESS

Sy.No.2, Allanagar

Bagnal Road,

District & Taluk Koppal

State: Karnataka (India)

Site: [email protected]

“C” ENVIRONMENTAL POLICIES

Cost effective operations

Control of pollution with in permissible parameters

Communication to interested parties

Compliance with legal requirements

Conservation of energy & other resources

Conducting training to all employees


mailto:[email protected]


MANAGEMENT TEAM OF H.I.P.L

M.D – Mr. R.Sharanabasaveshwara & Mr. R.Prakash (R.P. Mining’s

Bellary Road, Hospet)

D.G.M – Panduranga R.Reddy

Mechanical H.O.D – Mr. Siddalingappa

Electrical H.O.D – Dhananjya

Lab in charge – R.V.S.N Murthy

Account Manager – K.panduranga reddy

H.R.D – Shri. Raghunandan

Security Department – D.J. Jayasheelan

Stores department- T. Vishwambaran



SPONGE IRON PRODUCT PROFILE:

Steel ingots, billets steel structures, re-rolled products, sponge iron

where the foundries use it in steel producing companies and automobile

industries. For these companies sponge iron is necessary so it is clear that

automobile industry depends on steel industry and steel industries in turn

depends on sponge iron producing companies.

By products which producing sponge iron

Slag : Used by cement industry

Char: Used by brick industry. The raw materials required for energy one-

ton production of sponge iron.

Iron ore : 1500 kg

Lime stone : 110kg

Coal : 1200 kg

The efficiency of sponge iron is more the impurities are not much in

the solid form of state.

AREA OF OPERATION:

HIPL is operating only in Regional area.



OWNERSHIP PATTERN:

The former directors of the company are Mr. Suresh Lakhotia, Mr,

Vinay Biyani, Mr. Champalal Biyani, Mrs. Meena Lakhotia and Ms. Smriti

Lakhotia, and they sold this company to Mr. R.Sharanabasappa and Mr.

R.Prakash.

Mr R.Sharanabasappa and R Prakash are the present owners of the

HIPL Company. Mr.R.Prakash is working as a whole time Director.

COMPETITORS INFORMATION:

The following are the competitors of this company. They are as follows:

Hare Krishna Company

Dhruvadesh company

HKT Company

INFRASTRUCTURE FACILITIES:

The location of the company is good for normal business activities.

Especially it is 2 km away from NH 63 and 12 km from Koppal and 20

km from Hospet.

Good work environment

Purified Drinking water

Canteen facilities

Two lakes for water reserver

Bus facilities to employees



ACHIEVEMENTS /AWARDS:

It has got ISO 9000 Certificate for its best Quality product.

It has continuous demand for its products even though there is a

more competition because of good quality. It has already booked 3

years demand. So it is a great achievement of this company

FUTURE GROWTH & PROSPECTUS:

The company wants to extend its capacity because of increasing

demand by establishing one more kiln and opening of another plant



Table 3.1 DIFFERENT DEPARTMENTS OF HIPL:

SL.NO DEPARTMENTS NO.OF

EMPLOYEES

1. HRD 3 Members

2 Accounts 8 Members

3 Dispatch 3 Members

4 Mechanical 37 Members

5 Stores 11 Members

6 Civil 7 Members

7 Electrical 19 Members

8 Lab 11 Members

9 Pay Load 9 Members

10 Product House 3 Members

11 Security 28 Members

12 Weigh Bridge 4 Members



Fig 3.2 ORGANIZATION CHART


Plant In charge

Managing Directore

Manager(Maintenance)

Manager(Electrical)

Manager(Production)

Manager(QA/Cal)

ManagerAccounts

Manager HR/Admin Manager

MarketingManagerPurchase

Manager Stores

General Manager(works)

Shift in charge

AssistantFitter Electrician

Shift in charge Accountant

Shift in charge

Shift in charge

Assistant

AssistantChemist

AssistantAssistantAssistant

HelperHelper


Chapter.4

4.1 FUNCTIONAL ANALYSIS: PRODUCTION

DEPARTMENT

HIPL is the leading company in the production of sponge iron and

billets in the south region. HIPL’S production unit is very big it acquired

150 acres of land. Here the production nit produces sponge iron billets and

other byproducts like char and slag.

Production Department Units

1. Steel Melting Shop (SMS)

2. Sponge Iron Plant (SIP)

3. Rolling Mills Division (RMD)

4. Integrated Steel Plant (ISP)

Right now HIPL only one production is working i.e, Sponge Iron

Plant.

Sponge Iron Plant

HIPL produces every day 200 ton of sponge iron by using two kilns.

Using raw materials like ore, coal and limestone produces sponge iron. Raw

materials are brought from the places like

Iron ore - Hospet and Sandur (Karnataka)

Coal - South African



Lime Stone - lokapur

There are 150-200 employees are working in sponge iron plant. By

sponge iron plant HIPL produces electricity by using the waste gases come

out from the kiln (Sponge Iron Unit) nearly about 2.5 mwt per day power is

generated by two kilns.

STEPS IN THE PRODUCTION OF SPONGE IRON:

The entire process of production of sponge iron can be studied under

following headings.

Filling of raw materials & pre-heating.

Direct reduction.

Cooling of product.

After burning.

Dust extraction.

Magnetic separation & storage.

Inspection & testing (QC).

1. Filling of Raw materials and pre heating:

By means of a belt conveyors in appropriate quality & proportions,

the required feel rates are given below for every one ton production of

sponge iron

Iron ore- 1700kg

Lime stone- 100kg

Coal – 1250kg



Raw materials are discharged into an inlet chute from where they

make an entry into kilns. Raw materials enter the pre heating zone of the kiln

(up to about 16 mt approx) here it is heated by the hot gases per rings is

passage through pre heating zone, the materials are heated up to the

reduction temperature (1000c) and the moisture content is expelled out. The

lime as we know it is a desulpharising agent.

2. Direct reduction:

The heated charge is know reduced to sponge iron shell air fans

provided right amount of air so that only CO is formed by combustion of

coal. Some chemical reaction takes place solid state and just below the

temperature melting of iron (1200c). To avoid slight cooling, injection coal

is injected from other end of kiln. This maintains the required temperature in

the zone and avoids backward reaction taking place.

3. Cooling product:

The outlet temperature of kiln is about 980c-1040c after all the

reaction terminated the products are transferred to a kiln. Here the products

are indirectly cooled by spraying water around the cooler surface.

4. After burning:

At the exhaust of kilns an after burning chamber (ABC) is provided to

accomplish the following tasks.

1. Any unburnt hydrocarbon is burnt.

2. Dust in burned gases is removed by water spray.



3. To discharge hot kiln gases to the atmosphere.

4. To temperature increases to 1000c.

5. Dust extraction:-

The cooled product, which is about 1000c, is carried in a heat resistant

belt conveyor. The product now contains sponge iron, dolochar & dust. The

dust is removed by passing the mixture through dust extraction system

where dust is removed by precipitator.

6. Magnetic separation and storage:-

The dust free mixture is carried to triple deck screen house, where it is

separated into particles of sizes of 3mm, 10mm and 20mm. Each one of

these products then passes through magnetic separators. The magnetic

separator separates the magnetic sponge iron from the non-magnetic

dolochar. All these are stored in separate bunkers.

7. Inspection and testing (QC):

Both raw materials and products are analyzed in the SID laboratory. Sponge

iron samples tested are taken out at regular intervals (about 2 hours) these

samples are powdered and checked for amount of Fe in the samples in a

polarization machine. This machine works on the principles of ‘’saturated

magnetization’’.

The magnetic field of the instrument is first matched with earth

magnetic field. When the machine is loaded with sample, the field is



distributed due to the iron content. Again the amount of iron in this sample

is directly read out at the indicator (usually it lies between 70%-80%).

Fig 4.1 WORK FLOW MODEL:

To screen

From cooler discharge / surge bin


Storage (slinger coal)

Storage (medium coal)

Storage (Coal) lumps)

KILN

COOLER DISHCHARGE

Surge bin

Storage (iron ore)

Screening of fixed and product(Sponge iron)

S.I lump+ char S.I fines + dolochar

Magnetic separator lumps Magnetic separator fines

S.I.lump bin -1

S.I.lump bin-2

Char bin S.I. finer bin


4.2 FUCTIONAL ANALYSIS: MARKETING

DEPARTMENT

INTRODUCTION

Marketing is indeed an ancient art. It emerges as a management

discipline, however is of relatively shown period has gained so much

impartment thinkers and practitioners through out the world view it as the

most importance of the Management function is Business

MARKET

Marketing is a place where the goods and & services are exchanges

the term marketing means to the aggregate of all demands for all particular

product or services. It also refers to the aggregate of all consumers existing

and potential foe the products.

MARKETING CHANNEL

The major demand for sponge iron is from induction furnace unit is

hundreds of induction furnace unit spread all over country which make

variety of steel. The present study reveals that there are five major

Marketing center in the country.

Hyderabad

Coimbatore



Bangalore

Cochin

Mumbai

Fig 4.2ORGANIZATION STRUCTURE OF MARKETING

DEPARTMENT

SALES

Any one company should have correct and clean sales plan and the

same plan must be followed each and every time. Otherwise, the finished

output remain blocked and the working capital cannot be obtained to

perform the day-to-day activities to the firm

The HILP gets the enquiring from the internal customer the enquiries

may be in the form of telephone, tax, letter and e-mail ect. Regarding the

availability of the material, price, duty structure, sales tax applicable,

payment terms, ect.. of the customers are satisfied with the terms and

conditions of HIPL the order will be placed which included quantity of the

product, mode transport, terms of payment etc. placing of the order through

Seshadripuram Institute of Management Studies

Deputy Manager

Hyderabad Chennai Cochin Mumbai Bellary

Marketing Executive

Marketing Executive

Marketing Executive

Marketing Executive

Marketing Executive

24


fax HIPL reaching the purchase order the corresponding section of the sales

department order and if the same is satisfactory

HIPL sends the sales order according to the purchase order. Sales order is an

arrangement between manufacture and the customers which confirms the

purchase order. Two copies of sales order will be sent to the concerned

customer and the anther copy is duty singed and sent to the marketing

department of HIPL.

This copy is maintained both by the customer side and by manufacturer side

to avoid further disputers purchases and sales of materials.

After receiving the sales order form, the customer planning dispatch

will take place. HIPL makes the daily dispatch plan.

The daily dispatch plan will be handed over to the dispatch in charge who

calls the transportation of the material the dispatches in charges will strictly

follow the daily dispatch plan.

TRANSPORTATION

It is the first among the major function of physical distribution, it adds

time utility and places utilities to the product.

There are six types of transportation the manufacture must also know the

relative cost of made

Railway transport

Road transport

Water transport



Coasted shipping transport

Air carrying transport

Pipeline transport

The transportation mode of HIPL is roadways. HIPL cheapness the

road ways because of following reasons.

More accurate

It eliminates the terminal cost

Time take is less

Cost is also low

Road ways is very convenient of manufacturers as all as buyers

Road way help to inventory cost retrained and business turnover

become faster

HIPL use trucks as main vehicles for transportation. The

transportation is on two Ways basis and free in rail basis.

WARE HOUSING

Every company has to store finished goods until they are sold because

production and consumption cycle rarely matches. As a matter of fact ware

housing management has two distinct and equally important are,

The physical job of creating and scanning the network of stor-

age points.

The managerial face of controlling the inventory level.

HIPL produces semi ready made material or we can call as raw-

material for steel makers. So there is no need of market their self, just they



are receiving order from other companies and manufacturing as per as their

requirement.

There is much demand for Sponge Iron in today’s market but they are

receiving order as per their capacity (100 t/p).

Mainly they are marketing their products to:-

Pune – Kalyani Carpeting

Ahmadabad

And for companies such as Kalyani Steel Industries etc.,

These are the permanent customers of the HIPL

STOCK HOUSE

The stock house of HIPL is made up as their average of turn over.

They can store 850 tons in 1 Bunker. It includes : -

2 Bunkers of Iron Ore

3 Bunkers of Coal

3 Bunkers of Coal fines.

Totally 8 Bunkers are existing in HIPL.



SWOT Analysis

Strengths

1. It us an ISO 9001 certified company

2. Low cost of production enjoying economies of scale

3. Efficient technologies for large number of Generics.

4. The company has maintained a good relationship with its supplier’s

distributors.

Weaknesses

1. Power intensive, dependant on power and any miscarriage have

results is under-utilization of capacity.

2. Lack of experience in International Trade.

3. Explore attrition rate management is high in the company.

Opportunities

1. Rising incomes resulting in getting better medical facilities.

2. Increased awareness for health care.



3. New diagnoses and new social diseases.

4. Saturation point of market is far away.

5. Globalization resulting in newer markets and easier international

trading.

Threats

1. Containment of rising health-care cost

2. High cost for entry in new markets.

3. Rising cost of sales and marketing.

4. Competition, particularly from generic products.



4.3 FUNCTIONAL ANALYSIS: HUMAN RESOURCES

DEPARTMENT

HUMAN RESOURCES POLICIES:

The following are the some of the HR polices. They are as follows:

1. Recruitment & Selection

2. Training & Development

3. Job analysis

4. Salary Administration

5. Performance Appraisal

6. Grievance

RECRUITMENT POLICIES:

1. Provide formal statement of corporate thinking

2. Establish consistency in application of policy over a period

3. Offer guidelines to managers for thinking action.

4. Improve communication and secure co-operation from employees.

5. Provide criteria (measuring yards) for performance evaluation of

persons involved in recruitment.

6. Build employees enthusiasm and loyalty and increase their confidence.



MAN POWER:

Man power is major aspect of any business or organizational activity

without man no production, and no business. So at all work, all activities of

business are based on man power of the organization. Success of every

organization is depending on man power of that organization.

Man power or human resource of HIPL is very good. They have 174

workers. 170 are Male-employees and remaining 4 are Female-employees.

They divide workers according to their skill, knowledge, qualification and

work. There are totally 3 types of workers.

Technical.

Non-Technical

Labor Group.

Technical: The Technical workers are the base of production. They must qualify as any technical course like B.E., B.Sc, and I.T.I. etc.

The workers or employees of technical are:-

Engineers

Section or Shift In charge

Lab Attainder etc.

Non-Technical : Non-Technical employees are those whoever comes or

works all related jobs of marketing, store, dispatch accounts, security,

management etc.,



The majority of workers in HIPL is Non-Technical workers are doing

their work in production but Non-Technical workers are handling all related

work of organization. Non-Technical workers are:-

Management

Security

Accounts

Stores

Marketing etc

Requirement of employees is depending on their work.

Labor Group: These are the employees of HIPL who works under or who

works as assistant of employees. They are just for normal or minor works as

cleaning, helping etc.

EMPLOYEES STRENTH

There are 174 employees in the factory, who work in the

administration section. The working hours for an employee are 8 hours.

The HIPL Company holds 4 shifts per day.

Sl.No Shift In Time Out Time Total Hours1. A 06:00 AM 02:00 PM 82. B 02:00 PM 10:00 PM 83. C 10:00 PM 06:00 AM 84. G 08:30 AM 05:30 PM 8

Table 4.31 Shift wise Time Table



Wages are given on time basis. The wages are given before 10th of the

month. The wages are paid directly to the employees through cheque and

through direct cash to the employees.

OTHER FACILITIES FOR THE WORKERS OF THE COMPANY:

1. Canteen Facility

2. Safety Shoe Facility

3. Incentives

4. Loan Facility

5. Bonus.

SELECTION POLICIES:

1. Selection Criteria

2. Selection Process

3. Decision-Making

4. Communication.

Sl. No

Derivative Plans Programs Activities

1. Acquisition Plan HR. Planning, Recruitment

HR Inventory, HR Forecast, Job Analysis etc.,

2. Absorption Plan Selection, Induction, Placement, Workers Training

Marker survey on job, Advertisement, Consultant, Employment Exchanges, Selection Process, Selection Texts Induction Training Socializing.

3. Development Plan

Management Development Career Development

Off Job Training,

Evaluation, Career Stages

4. Utilization Plan Promotion,

Transfer Wages& Salaries Administration

Analysis / Dimensions Resources leveling Evaluation Job Evaluation



5. Maintenance Plan Discipline Rewards & Benefit Program

Redress of Grievances (ROG) Merit Rating Annual confidential

6. Retention Plan Incentive ,Schemes Performance Appraisals

Reports Work study Time standard Feedback

7. Motivation Plans Rewards Morale & Motivation steps safety program Welfare program

Leadership/supervision on Duty Intervention Safety week Safety Training Subsidized canteen/ Transport, Employee lone

8. Empowerment Participation Social security scheme Attitude survey Intrinsic Motivation steps

Works committees, WPM, Housing Co-operative MBO Hospital facilities, Insurance cover Retirement Benefits Work-redesign work reschedule

Table 4.3.1 HR PLANS PROGRAM AND ACTIVITIES:

Fig 4.3.1 RECRUITMENT AND SELECTION PROCESS


Security of Plant and personnel

Legal matters rating to labor electricity, land, pollution control

Land acquisition other related materials.

Public relations.

Contract labor administration.

Administration of stationary and other welfare facilities.

Discipline.Social welfare.

Letter of intent

Intimation

Regret Letter

Selection

Panel

RejectionEmployee Joining

Housing/TERM accommodation.

Visiting Cards. Office Accommodation.

After ascertaining exact joining date

Intimation to next person in panel

Not Responding

Man Power Planning

Receipt of Application

Calling for Interviews

Interviews

References, Consultants, Ads, Open Applicationn

Feeding into Data Bank Fixation of date in

consultation with concerned Dept head & intimating the same again to time one in advance in writing.

Acknowledgement to Applicant

Payment of Traveling Expenses.Filling up of House Requirement Form.(MGRS

& Above)

1. Verification of Original Certificate2. Brief introduction about Organization & Nature of work/job.3. Oral by Committee.4. Oral by Chief Executive.

AAAAAAAA

A

B


SWOT ANALYSIS

Strengths

1. It us an ISO 9001 certified company

2. Efficient technologies for large number of Generics.

3. The company has maintained a good relationship with employee

Weaknesses

1. Lack of experience to exploit efficiently the new patent regime.

2. Power intensive, dependant on power and any miscarriage have results is under-utilization of capacity.

3. Explore attrition rate management is high in the company.

Opportunities

1. Rising incomes resulting in getting better medical facilities.



2. Increased awareness for health care.

3. New diagnoses and new social diseases.

4. Saturation point of market is far away.

5. New therapy approaches.

6. Globalization resulting in newer markets and easier international trading.

Threats

1. Containment of rising health-care cost.

2. Increasing cost of discovering new products and fewer discoveries

4.4 FUCTIONAL ANALYSIS: FINANCE DEPARTMENT

The finance function deals with the procurement of money at the

time when it is needed and its effective utilization in the enterprise. Money

is the lifeblood of any enterprise, as it is required to purchase machines

and materials to pay wages and salaries to employees and to allow credit

facilities to customers.

An important requirement for the success of any business

organization is the provision of sufficient amount of funds or capital. It

cannot work unless it has got sufficient amount at its disposal to purchase

machine and materials, build premises, and meet day-to day expenses and

for several other purpose.

The event of capital - Intensive Techniques has increased the

importance of finance. The ambition plans of an industrial undertaking



will remain mere dreams unless adequate finance is available to convert

them into reality. Therefore it has become an important function of

management to provide for adequate finance for the functioning of the

enterprise.

For companies, which carry on production and distribution on a

large-scale provision of adequate finance, is a very challenging task. It

affects all the business decisions where money is involved, since the large

commercial and industrial undertakings are set up in the form of

companies, the problems of finance for modern business is for all practical

purposes of the problem of corporate finance. All the important financial

decisions are taken by the board of directors of company.

OBJECTIVE OF FINANCE DEPARTMENT

Since financing is one of the functional areas of any business

enterprise, the objective of financial management must be done with the

overall objectives of the enterprise. The objectives of the finance

department should be so devised that they contribute directly towards the

achievement of the overall organizational objectives.

Ensuring regular and efficient supply of capital to the business.

Ensuring a fair rate of return on capital to the supplier.

Ensuring better utilization of capital by following the principles of

Liquidity, profitability and safety.

Coordinating the activities of the finance department with those of



the other department of the enterprise.

MANAGER ACCOUNTS

Finance and A/c managers concerned with measurement of

income/expenditure for specific periods of time such as month and year

(income/expenditure statement) financial reports at the end of the period.

MANAGER COSTING

It is concerned with determining relevant cost and performing other

analysis like preparation of budgets and performance analysis based on

budgets.

MANAGER FINANCE

He is responsible for overall financial planning and for raising capital he

has the following functions to perform major activities are financial,

forecasting, fund management, auditing and capital budgeting

Fig 4.4.1ORGANIZATION STRUCTURE OF FINANCE



Software’s used to maintain accounts or records

Tally: To mention accounting records.

Auto Cad: To make sketches, drawings etc.

Matt Rick System: To make attendance of employee by pressing his

thumb on machine.

Normal windows software like M.S.-Word, M.S.-Power Point etc for

required official uses.

Practice/ Procedures

Companies contribute to PF and super annual fund as per the rules

of P.F. Act not excluding 12% of the basic salary. Gratuity will be

limited to half a month’s salary for each completed year of


FINANCEMANAGER

ASSISTANT ACCOUNT MANAGER

SENIOR ACCOUNT MANAGER

39


service.

The company has already implemented the code of corporate

governance as required by the listing agreement introduced by

Securities Exchange Board of India (SEBI).

Perquisites shall be evaluated as per IT rule wherever applicable

and in absence of any such rule perquisites shall be evaluated at

actual cost.

The company has given interest free loan and advance in the

nature of loans of employee’s recovery are made according to the

stipulated time.

The Stock of Finished goods, Raw materials, Stores & Spares are

physically verifies every quarterly.

Particulars 31.03.2008 31.03.2009


Profit and Loss Account for the year ending 31st March 2009


I. Sources of funds: 1.Shares funds: a. Share capital b. Reserve and surplus 2.Loan funds a.Secured loans b.Unsecured loans

3.Deferred tax liabilities

II. Application of funds: 4.Fixed Assets a. Gross block b. Tax Depreciation written off c. Net block d. Capital work in progress

Net fixed assets 5.Investments

6.Current assets, loans, and advances: a. Current assets Inventories Sundry Debtors Cash and Bank balance Other current assets b. Loans and advances c. Less: Current liabilities and provisions

Net current assets

7.Misc.expenditure To the extent not written of or adjust

92000.00 69816.47

150029.8523353.56

242072.2454200.5818787.66 9618.81

55274.9269369.7515548.853676.6131359.39175229.53

32866.47

161816.47

173383.415093.30

340293.18

324679.29000.00

317592.58

439.65

340954.00

92000.0060493.28

82713.14 4433.78

217687.3526748.18190939.1724245.19

97484.3536632.9818469.963276.6521424.41177288.25

52010.20

152493.28

87146.92 4353.05

243993.25

459619.89000.00

302566.4

------

196352.11



PARTICULARS

I. INCOME Gross turnover Less: excise duty Net Turnover Other Income

(A) II. Expenditure: Cost of Raw materials consumed Salaries ,wages and other employee benefits Manufacturing and Administrative exp Selling exp distribution exp Interest and other financial charges (B)

III. Profit : before Exceptional items and taxation Exceptional Items

(A-B) IV. Profit After Exceptional Items but before taxation Provision for corporate tax - In respect of earlier year - In respect of current year Deferred tax provision for fringe benefit tax

V. Profit After taxation + Balance brought forward

VI. Appropriation: Transfer to General Reserve Balance carried to Balance Sheet

VII. Notes on Accounts and significant Account policies

31-3-2009

557956.84 80840.68 477116.16 1709.07 478825.23 310489.85 6418.00 44125.07 38658.22 27223.78 27726.47

454641.39

24183.84 000.00

24183.84

000.00 3862.69 740.25 257.71 4860.65 19323.19 000.00 19323.19

19323.19 000.00

10.15

31-3-2008

478249.91 1546.15 476703.76 1301.29 478005.05 82680.34 14519.37 2392.67 22798.35 17519.46 21431.73

161341.92

316663.13 000.00

316663.13

30.23 4383.28 1254.63 243.01 5911.15 310751.98 000.00

310751.98

310751.98 000.00

12.40

BALANCE SHEET AS ON 31-MAR-2008-09



RATIO ANALYSIS

SL.NO PARTICULARS 2008 2009

1 Net profit Ratio: 5.04% 1 .95%

Net profit x100Sales

2 Net Asset tern over Ratio 0.63 : 1 1.40 : 1

Net sales x100Total Assets

3 Fixed Assets tern over Ratio: 0.98:1 2.42:1

Net sales x100Fixed Assets

4 Current Assets turnover Ratio: 1.71:1 3.35:1

Sales x100Current Assets

5 Current Ratio: 3.41:1 5.33:1

Current Assets x100Current Liabilities

6 Liquidity Ratio: 2.70:1 3.22:1

Liquid Assets x100Current Liabilities

7 Net Profit Ratio: 7.82% 2.97%

Net operating Profit x100Net sales

8 Earning Per Share 12.40 10.15



Mckinsey’s 7S FRAME WORK:

The famous U.S consultant Mc Kinsey’s and the company developed

holistic approach towards the end of 1970 for diagnosing the cause of the

organizational problems and formulate the project for the improvement of

the physical and fiscal health of the company. The 7-S model is a tool for

managerial analysis and action that provides a structure with which the

whole of the organization can be considered so that the organizational

problems can be diagnosed and a strategy may be developed and

implemented. The 7-S model is a framework for analyzing the organization

and their effectiveness as a whole.



The 7-S diagram illustrates the multiply, interconnectedness of the

elements that design an organizations ability to change. The theory helps to

change the managerial thinking about how the companies can be improved.

Framework of Mckinsey’s 7 – S model:

1. Shared value: The interconnecting centre of Mckinsey’s model is

shared values. What does the organization stands for and what it

believes in central beliefs and attitudes.

2. Strategy: Plans for the allocation of firm’s scarce resources, over

time, to reach identified goals, Environment, competition, customers.

3. Structure: The way the organization’s units relate to each other.

Centralized, functional division (top down); decentralized; matrix,

network, holding, etc,

4. System: The procedures and processes that characterize how

important work is to be done.

5. Staff: Numbers and types of personnel within the organization

Promoters of the company and the qualities of the key staff.

6. Style: Cultural style of the organization and how key managers

behave to achieving the organization’s goals.

7. Skill: Distinctive capabilities of personnel or of the organizations

as a whole.



1. STRUCTURE:

Organizational structure refers to the basic hierarchical procedure in

which the organization carries out their business and accompanying baggage

that shows whose tasks are divided and integrated.

Pascale and Athos in their book “The Art of Japanese Management” says

that “Organization structure emphasizes that the quality of management

depends on the goodness of which amongst all those key managerial

dimensions”.

2. SKILL: The Company has at the bottom level skilled as well as

semiskilled workers. The management takes care to improve skills and

knowledge of their employees by using different techniques like: Job

rotation, on the job training, training by superior, and demonstration.

And the employees above the lower level of the organization are given

on-the-job training by the concerned department supervisor or the immediate

superior of the trainee/ employee. This will enhance the knowledge of the

trainee as he will learn while the job and know his mistakes which he

commits, which will be corrected by his superior.

The company treating their employee as an asset because of their

efforts and managements efforts the company is producing high quality of

Sponge iron which has a more demand in the market. Because of this reason

the company the company is capable of supplying the sponge iron to its

customers on right time.



3. STYLE: Style refers to the leadership style of the management. It tells

how communication takes place between management and its employees.

The style of management at HIPL is closely associated with team spirit,

interpersonal relationships with employees.

The employees participate through meetings, committees etc. The

management of HIPL is employee oriented. They receive feedback from the

workers and decide the changes in the strategies.

The organization follows the participative style of leadership. This can be

said so, because each and every employee of the organization is allowed to

give there point of views which are concerned to production marketing and

other areas.



4. STRATEGY: According to McKinsy’s 7 S Model, strategy can be

defined as “A coherent set of actions aimed at gaining a sustainable

advantage over competition, improving position vis-à-vis customers, and

allocating resources”.

The strategies adopted by the HIPL are very clear these are given

below.

HIPL adopted a strategy to produce good quality of sponge iron


B D

OD

MANAGING DIRECTOR

PLANT MANAGER & GENERAL MANAGER DEPT

MANAGERS

ASSISTANTSWorkmen/ Laborers

Permanent (Experienced/Skilled)Casuals (Skilled/Unskilled)

48


It follows pricing strategies which gives more profitability to the

company because of good quality and timely delivery of its

product.

HIPL adopts certain strategies to develop human resources through

human resource planning and development programming with a

view to further improve the skills and performance of their

employees.

Safety and welfare strategies are adopted by the organization to

strengthen the environment, health, and safety measures.

Waste Elimination strategy adopted by HIPL:

With a change in social values, industries are increasingly targeting its

contribution to society with a long term vision, and are performing and to

satisfy the demands for increased profits with reduced level of wastage and

high productivity.

HIPL minimizes its wastage in the following ways

Reduction of wastage of stock in hand

Reduction of defective production by taking proper measures

Reduction of waste by carefully transporting the products

During the production of sponge iron it generates two types of wastage.

Namely

1. Iron ore fines

2. coke brae The company makes takes its maximum benefit by selling it

at the rate of Rs 700 per ton



5. SYSTEM: System refers to all the rules, regulations and procedures both

formal and informal that complement the organization structure. It includes

Quality control and assurance system, performance evaluation system, and

production planning and control system.

a. Quality Control & Assurance System:

The quality control & assurance system will be headed by an AGM

and assisted by a manager & there deputy manager. The activities involved

here in this system are as follows:

This section is responsible to enable the following:

All input raw materials should be as per the required standards.

Following the technological parameters in all the processes to ensure

product quality.

Testing and inspection of finished products and attending to quality

complaint of the customers.

b. Performance Evaluation system:

HIPL has the performance evaluation system this system evaluates the

performance of every employee's work. It will provide rewards according to

his performance. In HIPL every HOD’s given a confidential report in that he

records the performance of particular employee and he will submit it to the

superiors superiors evaluate it continuously

c. Production planning and control system:



Every year HIPL prepares a production plan in advance and according

to that it produces the products. The productions are planned according to

the capacity of each department and forecasted sales.

6. STAFF:

Total Man Power

Male Employees 170

Female 4

Total Manpower 174

Man power is major aspect of any business or organizational activity without man no production, and no business. So at all work, all activities of business are based on man power of the organization. Success of every organization is depending on man power of that organization.

Man power or human resource of HIPL is very good. They have 174 workers. 170 are Male-employees and remaining 4 are Female-employees. They divide workers according to their skill, knowledge, qualification and work. There are totally 3 types of workers.

Technical.

Non-Technical

Labor Group.

Technical: The Technical workers are the base of production. They must qualify as any technical course like B.E., B.Sc, and I.T.I. etc.

The workers or employees of technical are:

Engineers

Section or Shift In charge

Lab Attainder etc.,



Non-Technical: Non-Technical employees are those whoever comes or works all related jobs of marketing, store, dispatch accounts, security, management etc., The majority of workers in HIPL is Non-Technical workers are doing their work in production but Non-Technical workers are handling all related work of organization.

Non-Technical workers are

Management

Security

Accounts

Stores

Marketing etc

Requirement of employees is depending on their work.

Labor Group: These are the employees of HIPL who works under or who

works as assistant of employees. They are just for normal or minor works as

cleaning, helping etc.

6. Shared value: As per the model, “Shared Values” implies “The

values that go beyond, but might well include, simple goal statements in

determining corporate destiny. To fit the concept, these values must be

shared by most people in the organization.



The HIPL has implemented its shared values in following regards

The HIPL have a ready market for its product due to high quality.

It has been able to build the lasting relationships based on trust and

mutual benefit.

It has been able to provide job opportunities to the village people

who are staying near the organization.

To achieve the mission and vision HIPL derived following values

Customer orientation

Vendor development

Development of Human Resource

Process and product excellence

Responsible corporate neighbor



Chapter 5

SWOT ANALYSIS

A scan of the internal and external environment is an important part

of the strategic planning process. Environmental factors internal to the firm

usually can be classified in as strengths (S) or (W), and those external to the

firm can be classified in as opportunities (O) or threats (T). Such an analysis

of the strategic environment is referred to as SWOT analysis.

The SWOT analysis provides information that is helpful in matching the

firms resources and capabilities to the competitive environment in which it

operates. As such, it is instrumental in strategy formulation and selection


T = ThreatsT = Threats

S = StrengthsS = Strengths

SWOTSWOT W=WeaknessesW=Weaknesses

O = OpportunitiesO = Opportunities


Strengths

HIPL is ideally located near the major power generating station both

hydra and thermal like, Munirabad. This serves as advantageous for

HIPL.

HIPL has its own IRON ORE mines so they are not dependent on

any other supplier

They are market leaders because of their high grade sponge iron

Weaknesses

Less source of funds for diversification capacity at four divisions of

the plant are not fully utilized

Cost of using electric is furnace cannot be reduced and due to high

consumption of power hipl’s pricing strategy is not very effective to

that of its competitors.

Due to heavy dust imitation HIPL facing the problem from public

Opportunities

Efforts are putting for reducing the power cost, which is key element

in the process of steel manufacture

Steel industries such as Jindal, Kalyani, and Mukund have come up

in Bellary region from which demand for steel will increase.

Karnataka Govt. is implementing various dam constructions along

Krishna and Cauvery time and subsequent lengthy canal work for

irrigation purpose.

Coal based directly reduced sponge iron is in full demand among all



Threats

Not able to get the grants from various financial institutions.

Day by day the employees are hopping their job

The company is facing a lot of competition from their competitors



Chapter 6

SUMMARY OF ANALYSIS

6.1 FINDINGS

The employees have been assigned with a appropriate function

because of the that a verity of the job different nature are various

department

In this company the transport and canteen facilities are available

The company strongly believes in green and clean environment police

Company has a good reputation in the marketing by manufacturing

and distributing quality materials to customers

There are two ways of salary distribution i.e. through bank and cash at

site

The fringe benefits are provided only to permanent employees and not

for contract employees

The management is managing the workers effectively there are

satisfactory industrial relationship between the employee and workers



SUGGESTIONS

From the analysis of the data the following suggestions are made

Employees should encouraged by the organization

They should provide free education facility to the children of their

workers

The company also should extend the capacity in order to satisfy

demand of customer

Company should follow the same rule of providing quality materials

to customers for a longer life in market

Maintenance of previous records by the organization is helpful for

reference and also a lot of time can be saved.

Incentive for higher production should be paid to employees and

contract labour to motivate to increase production and reduce

overhead cost.

Effective training programmes should be carried out in order to

increase the knowledge and skills of the employee.



6.2 CONCLUSION

This inplant report titled “An organization study“ conducted at “Hospet

Ispat Pvt Ltd ”. The project concludes by followings

The company has an excellent human resource department where it the

employees are given best packages, incentives and extensive care is taken by

providing facilities and extra activities are conducting to motivate the

employees.

I had great time working on project as it gives insights into the working

environment of an organization.

The training has exposed me to many facts of an organization and

helped me to gain practical knowledge of all the departments and their

functions which will go a long way in horizon of my career I become more

aware of the company.

During the four week of my internship I gained rich experience which has

enlightened me about organizational steps.

I believe that the experience I had my internship training at the “Hospet

Ispat Pvt Ltd” will surely enrich my knowledge on industrial practicability

and my MBA carrier with a place of virtual learning experience.



Chapter 7

STUDENT LEARNING EXPERIENCE

Soon after the completion of the II semester in the last week of June, I

approached the Hospet Ispat Pvt Ltd, Allanagar, Bagnal road Koppal. I

submitted my permission letter issued by our college to Mr. Raghunandan,

HR Advisor of the Hospet Ispat Pvt Ltd. He was kind enough to provide all

necessary information sought by me and also gave entire picture and details,

particulars asked by me as per the guidelines issued by our college.

Sri Mr. Raghunandan has extended full co-operation & extended all

help even by introducing me to the various departments, heads and other

employees, who here involved in functioning of their unit with utmost zeal

and vigor, who explained about the method, mode of their role in

manufacturing of various products in the industry. I met not only head of the

department of various departments but also their subordinate employees and

had interaction with them in respect of their role assigned to themselves

from the job chart.

I feel it was a great opportunity for me to undergo an In-Plant

training in HOSPET ISPAT PVT LTD and I understood how the company

till now in fulfilling the requirement by providing the timely materials

required by the concerned departments. The support and the hands on

experience during the 4 weeks in the organization has become a value

addition in my MBA curriculum.



HOSPET ISPAT PVT LTD has a very enthusiastic HR team who is

always ready to help their colleagues. They are in charge of conducting

various activities within the organization like birthday celebrations, national

festivals etc.

For a company finance department plays a vital role in giving

financial assistance. In HOSPET ISPAT PVT LTD finance department

handles all the functions under different sub-sections namely Bills payable,

Bills receivable, general ledger, Cash and Bank, Annual accounts.

In HIPL there is no need for marketing department it has heavy

demand for its product and has signed a contract with their customers who

will buy their produced sponge iron for permanent.

The Study is limited to the information supplied by the department

head and the information collected through primary and secondary data. The

study is not proposed to be an expert study as it is conducted in a short

period of 4 weeks. The scope of the study, by and large is very vast. It is

difficult to satisfy all the areas; therefore an attempt is made to cover as

much as possible.

Finally it was a nice experience during my entire training period in

Hospet Ispat Private Limited and I think myself lucky for I met a person

who is very frank and very down to the earth I will never forget him in my

life he is Mr. Raghunandan (Manager HR HIPL) and I think I have put effort

in preparation of report is satisfactory to the required extent.



BIBLOGRAPHY

Books

V.S.P.Rao, Human Resource Management New Delhi: Excel

Book, 2008

Kotler Philip: Marketing Management 10th edition Prentice- Hall

of Indian Pvt Ltd

K. Ashwatapa: K.Shridhar Bhat: Production Management 8th

edition Himalaya Publication

Dr.S.N.Maheshwari: Financial Management New Delhi; Sulthan

Chand & sons 2007

WEBSITES:- www.hipl.com

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