report of mundra port
TRANSCRIPT
MATIN VOHRA
NAME MATIN I VOHRA
UNIVERSITY SARDAR PATEL UNIVERSITY
CLASS SY BBA [FOREIGN TRADE]
ROLL NO 27
COLLAGE FH SHAH INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY
YEAR 2009-2010
1
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PREFACEBBA Foreign trade is very different course from any other course During my entire visit I know some theoretical knowledge and practical knowledge about the international trade
Industrial visit is one of the important aspects of this syllabus One of the important aspects of this syllabus we believe that but hority had a particular purpose in mind when they includes full paper the theoretical knowledge understand able only when enter in to practical knowledge
FT is the exchange of the goods and services across international boundaries or territories
In most countries foreign trade represents a significant share of gross domestic product
Foreign trade has been present throughout most of history foreign trade is major source of economic revenue for any nation that is considered a world power
Foreign trade is also a branch of economic which together with international finance forms the branch of foreign economic
BBA foreign trade covered different types of subject they are as follows
1 International Marketing Management2 International Financial Management3 Transportation amp Material Handling4 Foreign Trade Policy5 Quality Management in FT6 Industrial Organization7 Economic Analysis for business Decision
2
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ACKNOWLEDGEMENT
3
MATIN VOHRA
SCHEDULE OF INDUSTRIAL VISIT
DATE TIME SCHEDULE
07-12-2009 (MONDAY)
08-12-2009 (TUESDAY)
09-12-2009 (WEDNESDAY)
10-12-2009 (THURDAY)
1000 TO 100 pm
300 TO 600 pm
1000 TO 300 pm
500 TO 600 pm
900 TO 300 pm
1200 TO 300 pm
500 TO 600 pm
MESO PVTLTD
KANDALA PORT
PSL LTD
HANDI CRAFT MARKET HUNT
MUNDRA PORT amp SEZ
LEC ON EXIM AT PSL LTD
KESARI OIL PVT LTD
4
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REPORT
ON
MUNDRA PORT amp SEZ Ltd
(ADANI GROUPS)
5
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ADANI GROUPS
MUNDRA PORT
[09-12-2009]
INDEX
6
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SRNO PARTICULAR PAGE NO
1 INTRODUCTION
11 About Adani Group12 About Mundra Port
13 Strength of Mundra Port14 Location of Port
2 ORGANISATION Values amp STRUCTURE
11 Vision amp Mission12 Structure of Management
3 HUMAN RESOURCE MANAGEMENT
4 FINANCIAL
5 FUTURE PLANS
6 FACILITIES
1-CARGO
2- TERMINAL
7 CONCLUSION
INTRODUCTION
About Adani Group
7
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Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder
The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007
To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus
Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider
8
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About Mundra Port
9
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The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade
Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country
With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port
Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency
With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo
PORTS STRENGTH
Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895
10
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meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
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Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
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Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
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Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
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MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
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MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
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External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
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FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
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Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
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STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
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Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
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(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
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FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
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SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
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Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
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LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
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ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
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CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
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DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
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handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
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MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
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PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
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CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
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PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
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INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
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INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
PREFACEBBA Foreign trade is very different course from any other course During my entire visit I know some theoretical knowledge and practical knowledge about the international trade
Industrial visit is one of the important aspects of this syllabus One of the important aspects of this syllabus we believe that but hority had a particular purpose in mind when they includes full paper the theoretical knowledge understand able only when enter in to practical knowledge
FT is the exchange of the goods and services across international boundaries or territories
In most countries foreign trade represents a significant share of gross domestic product
Foreign trade has been present throughout most of history foreign trade is major source of economic revenue for any nation that is considered a world power
Foreign trade is also a branch of economic which together with international finance forms the branch of foreign economic
BBA foreign trade covered different types of subject they are as follows
1 International Marketing Management2 International Financial Management3 Transportation amp Material Handling4 Foreign Trade Policy5 Quality Management in FT6 Industrial Organization7 Economic Analysis for business Decision
2
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ACKNOWLEDGEMENT
3
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SCHEDULE OF INDUSTRIAL VISIT
DATE TIME SCHEDULE
07-12-2009 (MONDAY)
08-12-2009 (TUESDAY)
09-12-2009 (WEDNESDAY)
10-12-2009 (THURDAY)
1000 TO 100 pm
300 TO 600 pm
1000 TO 300 pm
500 TO 600 pm
900 TO 300 pm
1200 TO 300 pm
500 TO 600 pm
MESO PVTLTD
KANDALA PORT
PSL LTD
HANDI CRAFT MARKET HUNT
MUNDRA PORT amp SEZ
LEC ON EXIM AT PSL LTD
KESARI OIL PVT LTD
4
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REPORT
ON
MUNDRA PORT amp SEZ Ltd
(ADANI GROUPS)
5
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ADANI GROUPS
MUNDRA PORT
[09-12-2009]
INDEX
6
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SRNO PARTICULAR PAGE NO
1 INTRODUCTION
11 About Adani Group12 About Mundra Port
13 Strength of Mundra Port14 Location of Port
2 ORGANISATION Values amp STRUCTURE
11 Vision amp Mission12 Structure of Management
3 HUMAN RESOURCE MANAGEMENT
4 FINANCIAL
5 FUTURE PLANS
6 FACILITIES
1-CARGO
2- TERMINAL
7 CONCLUSION
INTRODUCTION
About Adani Group
7
MATIN VOHRA
Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder
The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007
To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus
Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider
8
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About Mundra Port
9
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The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade
Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country
With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port
Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency
With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo
PORTS STRENGTH
Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895
10
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meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
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Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
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Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
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Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
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MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
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MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
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External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
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FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
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Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
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STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
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Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
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(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
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INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
ACKNOWLEDGEMENT
3
MATIN VOHRA
SCHEDULE OF INDUSTRIAL VISIT
DATE TIME SCHEDULE
07-12-2009 (MONDAY)
08-12-2009 (TUESDAY)
09-12-2009 (WEDNESDAY)
10-12-2009 (THURDAY)
1000 TO 100 pm
300 TO 600 pm
1000 TO 300 pm
500 TO 600 pm
900 TO 300 pm
1200 TO 300 pm
500 TO 600 pm
MESO PVTLTD
KANDALA PORT
PSL LTD
HANDI CRAFT MARKET HUNT
MUNDRA PORT amp SEZ
LEC ON EXIM AT PSL LTD
KESARI OIL PVT LTD
4
MATIN VOHRA
REPORT
ON
MUNDRA PORT amp SEZ Ltd
(ADANI GROUPS)
5
MATIN VOHRA
ADANI GROUPS
MUNDRA PORT
[09-12-2009]
INDEX
6
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SRNO PARTICULAR PAGE NO
1 INTRODUCTION
11 About Adani Group12 About Mundra Port
13 Strength of Mundra Port14 Location of Port
2 ORGANISATION Values amp STRUCTURE
11 Vision amp Mission12 Structure of Management
3 HUMAN RESOURCE MANAGEMENT
4 FINANCIAL
5 FUTURE PLANS
6 FACILITIES
1-CARGO
2- TERMINAL
7 CONCLUSION
INTRODUCTION
About Adani Group
7
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Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder
The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007
To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus
Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider
8
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About Mundra Port
9
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The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade
Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country
With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port
Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency
With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo
PORTS STRENGTH
Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895
10
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meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
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Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
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Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
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Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
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MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
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MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
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External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
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FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
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Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
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Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
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(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
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PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
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INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
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INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
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VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
SCHEDULE OF INDUSTRIAL VISIT
DATE TIME SCHEDULE
07-12-2009 (MONDAY)
08-12-2009 (TUESDAY)
09-12-2009 (WEDNESDAY)
10-12-2009 (THURDAY)
1000 TO 100 pm
300 TO 600 pm
1000 TO 300 pm
500 TO 600 pm
900 TO 300 pm
1200 TO 300 pm
500 TO 600 pm
MESO PVTLTD
KANDALA PORT
PSL LTD
HANDI CRAFT MARKET HUNT
MUNDRA PORT amp SEZ
LEC ON EXIM AT PSL LTD
KESARI OIL PVT LTD
4
MATIN VOHRA
REPORT
ON
MUNDRA PORT amp SEZ Ltd
(ADANI GROUPS)
5
MATIN VOHRA
ADANI GROUPS
MUNDRA PORT
[09-12-2009]
INDEX
6
MATIN VOHRA
SRNO PARTICULAR PAGE NO
1 INTRODUCTION
11 About Adani Group12 About Mundra Port
13 Strength of Mundra Port14 Location of Port
2 ORGANISATION Values amp STRUCTURE
11 Vision amp Mission12 Structure of Management
3 HUMAN RESOURCE MANAGEMENT
4 FINANCIAL
5 FUTURE PLANS
6 FACILITIES
1-CARGO
2- TERMINAL
7 CONCLUSION
INTRODUCTION
About Adani Group
7
MATIN VOHRA
Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder
The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007
To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus
Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider
8
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About Mundra Port
9
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The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade
Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country
With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port
Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency
With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo
PORTS STRENGTH
Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895
10
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meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
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Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
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Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
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Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
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MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
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MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
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External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
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FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
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Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
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STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
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Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
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(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
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FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
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SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
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LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
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CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
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DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
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CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
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PSL LTD
REPORT
[08-12-2009]
40
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PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
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INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
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INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
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VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
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Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
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PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
REPORT
ON
MUNDRA PORT amp SEZ Ltd
(ADANI GROUPS)
5
MATIN VOHRA
ADANI GROUPS
MUNDRA PORT
[09-12-2009]
INDEX
6
MATIN VOHRA
SRNO PARTICULAR PAGE NO
1 INTRODUCTION
11 About Adani Group12 About Mundra Port
13 Strength of Mundra Port14 Location of Port
2 ORGANISATION Values amp STRUCTURE
11 Vision amp Mission12 Structure of Management
3 HUMAN RESOURCE MANAGEMENT
4 FINANCIAL
5 FUTURE PLANS
6 FACILITIES
1-CARGO
2- TERMINAL
7 CONCLUSION
INTRODUCTION
About Adani Group
7
MATIN VOHRA
Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder
The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007
To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus
Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider
8
MATIN VOHRA
About Mundra Port
9
MATIN VOHRA
The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade
Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country
With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port
Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency
With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo
PORTS STRENGTH
Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895
10
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meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
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Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
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Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
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Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
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MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
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MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
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External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
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PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
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INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
ADANI GROUPS
MUNDRA PORT
[09-12-2009]
INDEX
6
MATIN VOHRA
SRNO PARTICULAR PAGE NO
1 INTRODUCTION
11 About Adani Group12 About Mundra Port
13 Strength of Mundra Port14 Location of Port
2 ORGANISATION Values amp STRUCTURE
11 Vision amp Mission12 Structure of Management
3 HUMAN RESOURCE MANAGEMENT
4 FINANCIAL
5 FUTURE PLANS
6 FACILITIES
1-CARGO
2- TERMINAL
7 CONCLUSION
INTRODUCTION
About Adani Group
7
MATIN VOHRA
Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder
The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007
To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus
Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider
8
MATIN VOHRA
About Mundra Port
9
MATIN VOHRA
The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade
Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country
With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port
Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency
With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo
PORTS STRENGTH
Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895
10
MATIN VOHRA
meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
MATIN VOHRA
Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
MATIN VOHRA
Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
MATIN VOHRA
Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
MATIN VOHRA
MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
MATIN VOHRA
MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
SRNO PARTICULAR PAGE NO
1 INTRODUCTION
11 About Adani Group12 About Mundra Port
13 Strength of Mundra Port14 Location of Port
2 ORGANISATION Values amp STRUCTURE
11 Vision amp Mission12 Structure of Management
3 HUMAN RESOURCE MANAGEMENT
4 FINANCIAL
5 FUTURE PLANS
6 FACILITIES
1-CARGO
2- TERMINAL
7 CONCLUSION
INTRODUCTION
About Adani Group
7
MATIN VOHRA
Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder
The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007
To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus
Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider
8
MATIN VOHRA
About Mundra Port
9
MATIN VOHRA
The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade
Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country
With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port
Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency
With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo
PORTS STRENGTH
Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895
10
MATIN VOHRA
meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
MATIN VOHRA
Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
MATIN VOHRA
Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
MATIN VOHRA
Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
MATIN VOHRA
MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
MATIN VOHRA
MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder
The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007
To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus
Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider
8
MATIN VOHRA
About Mundra Port
9
MATIN VOHRA
The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade
Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country
With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port
Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency
With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo
PORTS STRENGTH
Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895
10
MATIN VOHRA
meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
MATIN VOHRA
Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
MATIN VOHRA
Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
MATIN VOHRA
Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
MATIN VOHRA
MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
MATIN VOHRA
MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
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Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
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About Mundra Port
9
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The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade
Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country
With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port
Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency
With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo
PORTS STRENGTH
Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895
10
MATIN VOHRA
meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
MATIN VOHRA
Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
MATIN VOHRA
Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
MATIN VOHRA
Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
MATIN VOHRA
MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
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MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade
Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country
With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port
Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency
With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo
PORTS STRENGTH
Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895
10
MATIN VOHRA
meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
MATIN VOHRA
Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
MATIN VOHRA
Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
MATIN VOHRA
Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
MATIN VOHRA
MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
MATIN VOHRA
MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities
One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt
Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work
Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities
The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal
LOCATION OF PORT
Change into TEXT
11
MATIN VOHRA
Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
MATIN VOHRA
Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
MATIN VOHRA
Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
MATIN VOHRA
MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
MATIN VOHRA
MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Mundra port
Navinal Island Mundra - 370421
Dist - Kutch
Port office
PO No1 Mundra - 370421 Kutch
Tel + 91-2838-288201-8
Fax + 91-2138-282810-240
Register office Adani house
Nr Mithakali circle
Navarangpura Ahmadabad - 388009
India (079) 6565555
Vision
To be a globally preferred business associate mdash an entrepreneurial organization having
responsible concern for employees society ecology and stakeholder value
12
MATIN VOHRA
Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
MATIN VOHRA
Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
MATIN VOHRA
MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
MATIN VOHRA
MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Entrepreneurial - We shall think innovatively in all aspects of our business spanning the
gamut of technological and commercial practices
Preferred Business Associate - We shall strive to generate optimum value for all our
associates through constant innovation and adoption of universal best practices
Responsible Concern ndash We shall harmonize all our actions and reactions with the global
environment and actively work to reduce the load on the environment
Mission
Acquire develop assimilate and manage knowledge - We shall actively seek to become
experts in our chosen domains
Apply knowledge across our businesses ndash We shall apply our domain expertise across
businesses to deliver optimum value to our stakeholders
Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible
as well as intangible profits will ensure allocation of resources for developing
assimilating and managing expertise
ORGANISATION STRUCTRE
MD (Gautam Adani) CFO
13
MATIN VOHRA
Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
MATIN VOHRA
MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
MATIN VOHRA
MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Coo (chief operation officer)
VP vice president
GM
Manager
Deputy Manager
Assistant Manager
Senior officer
Officer
Jr Officer
Supervisor
Operator
Technician
14
MATIN VOHRA
MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
MATIN VOHRA
MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
MUNDRA SEZ
BENEFITS AVAILABLE TO SEZ UNITS
SEZs offer a host of benefits that facilitate operations for in-zone industrial
units Besides the Government of India benefits the Gujarat government has
also designed a policy that offers added incentives to the in-SEZ industrial
units The SEZ at Mundra will be spread over 100 Square kilometers providing
excellent flexibility in are as follow
Single Window Clearance for statutory requirements
Waiver of routine Customs examination of imports and exports
Clearance of Export consignments on self-certification
100 FDI permitted through the automatic approval route except the
negative list
Relaxed labour policy specifically for SEZ units (Applicable only in
Gujarat)
Freedom to realize and repatriate export proceeds within 12 months
No limit on quantum of DTA sales
Foreign investments allowed for items generally reserved for the Small
Scale sector Contract manufacturing permitted with units outside the
SEZ or in other SEZs
TAXES BENEFITS
15
MATIN VOHRA
MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
MSEZ amp other SEZ units can avail the exemption on taxes which would
otherwise be implemented on the general business units The following are the
tax benefits which are enjoy by the SEZ
Direct Tax Benefits ndash Income Tax
100 exemption for the first 5 years amp 50 exemption for the sixth
to tenth (next 5) years
50 exemption on the ploughed back profits for an additional 5
years after ten years
Exemption from Minimum Alternate Tax
Indirect Tax Benefits - Perennial exemption in all taxes including
Excise Duty
Custom Duty
Service Tax
Value Added Tax (VAT)
Stamp Duty Lease Tax
Entry Tax and various other State levies that would otherwise be
applicable on operations Domestic Tariff Area (DTA) supplier is
eligible for export benefits on SEZ sales making the sourcing cost
competitive
16
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
External Commercial Borrowings up to US $ 500 Million without
any specific approvals Cost competitive financing can be availed
from Offshore Banking Units (OBUs)
17
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
18
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
19
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
20
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
STORAGE FACILITIES
The storage facilities at Mundra SEZs are as follow
26000 sq m of open storage alongside rail siding
Wheat cleaning facility with a capacity of 1200 MT day
8 weighbridges for dry cargo
880000 sq m of well demarcated open storage space for steel
sheets plate coils scrap clinker salt coal coke bentonite etc
21 closed godowns ad measuring 137000 sq m for wheat rice
sugar deoiled cakes (DOC) fertilizer fertilizer raw materials
(FRM) etc
21
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Port Operations
MK Padia ndash Sr VP (Operations)
A port is a safe station for vessels It is a place from which vessels start and
at which they finish their voyages A port is a gateway to the land from the sea
and from the sea to the land
The importance of a port can be measured by a careful consideration of
the following points
(1) The number of ship visiting a port in a year
(2) The gross registered tonnage of ship entering the port in a year
(3) The goods handled ie export and import carried through a port
(4) Value of goods handled
(5) Earnings of a port
Classification of port
(1) Commercial ports
(2) Passenger ports
(3) Tans-shipment ports
(4) Enter pot ports
(5) Free ports
22
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
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innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
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Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
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Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
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fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
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Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
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Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
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Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
(6) Po of call and Bunkering ports
(7) Naval ports
Ports in India
Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam
Paradeep Marmugao Tuticorin Nhavasheva
Mundra Ports operations cover providing detailed information such as
schedules tariffs trade notices weather and tidal information etc Our robust
IT support eases decision making with the aid of top-of-the-line software
applications We are also equipped with state-of-the-art safety and security
measures and infrastructure to ensure and protect storage
23
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
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INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
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General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
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Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
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PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
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MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
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VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
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DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
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Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
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PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
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Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
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H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
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Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
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Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
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Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
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End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
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Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
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The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
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MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
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1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
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Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
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MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
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(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
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Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
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EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
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Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
IT SUPPORT
Mundra Port aims at seamless integration of its business operations and
has opted for an ERP platform developed by SAP the SAP based ERP is fully
operational now In addition to ERP we has also opted for industry and trade
specific software solutions which provide real time information and help in
improving decision making process and in turn lead to efficient port operation
Integrated Port Management System (IPMS) The port has implemented
the IPMS as Single Window port operation software The IPMS tracks port
operations in real time which in turn improves the efficiency of port
operations by optimizing the vessel turnaround time and cargo handling This
in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid
Bulk and General Cargo operations of the cargo terminal
Executive Information System (COGNOS Tools) Through this system
information from all the areas of the port is summarized and presented in a
suitable form to help the port management in taking effective decisions It is a
front end tool and utilizes the data information generated by IPMS
We have also developed capabilities to provide data related to weather
and tidal charts for providing directional guidance to port users
24
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
FIRE SERVICES
Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are
equipped with state of the art fire fighting facilities The fire services are
manned by highly skilled and trained fire professionals capable of handling
diverse emergencies
The Port has been divided in to five zones and each zone has dedicated
fire fighting systems and is manned round the clock for quick response Fire
personnel are posted at all the critical and hazardous area The Fire Services
ensures safe work culture by implementation and monitoring of work permit
system Two mobile fire fighting units with rescue and fire fighting equipments
are available on standby at the Central Fire Station to meet any emergency
situation inside and outside the port premises The Central Fire Control Room
monitors and co-ordinates all fire related emergencies and functions
Mundra Port Fire Services also participates in activities related to
community development they impart fire and rescue training to residents of
neighboring villages schools etc in collaboration with Gujarat State Disaster
Management Authority (GSDMA) The Mundra Port fire services often help by
sending its fire tenders and crews to extinguish major fire and carry out rescue
operations in the nearby industries and villages
25
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
SUPPORT SERVICE AT MUNDRA PORT
BUNKERING
The Adani Group promoters of the Mundra Port runs Adani
Bunkering Services which offers all grades of fuel oil and gas oil as per
ISO specification at globally competitive price The advantages of
bunkering at Mundra Port are as follows
Compliance with MARPOL Annex VI requirements
Services offered are at par with International Standards by virtue of two
owned-barges and oil terminal inside Mundra Port
ISO 9001-2000 accredited Bunker Supply Chain Management ensures the
quality of bunker fuels
Our internationally acclaimed 24x7 environment-friendly services ensure
meeting bunker fuel requirements in time
Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges
and Bunker supply
Besides Mundra Port Adanirsquos bunkering facilities can be provided at
Kandla Sikka Jamnagar and Vadinar
Road Tank Wagon supplies are available for alongside jetties
26
MATIN VOHRA
Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
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(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
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Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
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fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
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on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
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Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
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Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
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Adani Bunkering has procured orders for other Indian Ports such as
Mumbai JNPT Goa Cochin Haldia Chennai Visage and New
Mangalore
TUGS
Mundra has its own fleet of eight high powered tugs that provide
navigational assistance to large ships The tugs are capable of 57 ton
Bollard pull and equipped with fire fighting facilities
CUSTOM BANKING
Customs establishment for statutory clearances
MPSEZ Container Terminal under SEZ customs amp Nationalized and
private banks inside port limits
27
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LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
LOGISTIC CONNECTIVITY
Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350
km from Ahmadabad It is well connected to the rest of Indians by
RAIL
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
The port has 7 railway sidings and two dedicated diesel locomotives
It can handle double stack container trains
A 64 km private railway line has been developed which connects the port
with the national network at Adipur Adipur falls on the broad gauge
from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail
Company Ltd (KRCL) a project by the Indian railways to shorten the
distance between the northern hinterland (including Delhi and
commercially important cities like Ludhiana) and Mundra Port by
providing a broad gauge connection between Palanpur and Adipur
28
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
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Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
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Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
ROAD
Well linked to the National Highway grid by NH8ANH 15 and
state highway
AIR
Fully function Aerodrome at Mundra to facilitate landing of
private jets
Two commercial airports within an hourrsquos drive from Mundra
29
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
CARGO HANDLING amp STOGE
(A) Dry cargo (B) Liquid Cargo
1 Uricl 1Edible Oil
2 Fertilizer 2Petrol
3 DAP 3Diesel
4 Sugar 4Kerosene
5 Wheat 5Asian Gas
6 Rice 6Ethanol
7 Peas
8 Horse Gram
9 Green Gram
10 Coal
11 Steel Products
12 Pipe
13 Blade
14 Salt
30
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
DRY CARGO DETAIL
Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area
70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc
325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc
State of the art integrating mechanized bulk handling system unparalleled at any other port in the country
The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour
Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo
Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment
Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It
31
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
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Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
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Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount
LIQUID CARGO
Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area
Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks
Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen
Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed
32
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
HUMAN RESOURCES MANAGEMENT
The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port
RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal
In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc
33
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
MICTL-A WORLD CLASS CONTAINER TREMINAL
Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS
Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation
Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots
Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station
Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs
34
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
PORTS SERVICES
Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer
Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling
There is also providing packaging of cargo The other services are liquid tank farm area
Closed and open storage for bulk cargo
Cleaning and sorting of cereals
Privately developed road rail network and organization own air ship
There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers
Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port
Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year
Well planned safety equipment and system ensure hazard Free operation management at the fort
35
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc
FINANCIAL
The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM
Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI
19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day
Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000
The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces
Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions
Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future
36
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business
Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms
Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port
Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers
The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares
37
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
FUTURE PLANS
The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation
The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010
1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space
2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day
3 Double lining of the 64 km railway line in phased manner
4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built
5 Construction of dedicated LNG berth
6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun
38
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
CONCLUSION
The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus
company to other shipping cargo it is very good to other
There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port
The special economic zone is growing more amp more for other port
39
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
PSL LTD
REPORT
[08-12-2009]
40
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
PSL LIMITED
Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road
Gandhidham Kutch Gujarat
Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat
41
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
INDEX
SRNO TOPICS PAGENO
1 Introduction
2 General Information
3 Departments
1 Production Department
2 Marketing Department
3 Finance Department
4 HRM Department
4 Export Import Procedure
5 Conclusion
42
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
INTRODUCTION
PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector
PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT
Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country
43
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
General Information
Chairman Shri Y P Punj
Managing Director Shri Ashok Punj
Directors
Shri Alok Punj
Shri M M Mathur
Shri G S Sauhta
Shri R K Bahri
Shri D N Sehgal
Shri Prakash V Apte
Shri N C Sharma
Shri Ashok Sharma
Shri Harry H Shourie
Shri S P Bhatia
Shri C K Goel
Shri Paresh J Shah
Shri Harsh Pateria
44
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Director and Company Secretary
Shri G Gehani
STATUTORY AUDITORS
Suresh C Mathur amp Co
Chartered AccountantsNew Delhi
SHARE TRANSFER AGENTS
Karvy Computershare Private Limited
17 - 24 Vittal Rao Nagar Madhapur
Hyderabad - 500 081
SUBSIDIARY COMPANIES
PSL Corrosion Control Services Limited
Survey No 3772 Zari Cause Way Road
Kachigam Daman
Union Territory of Daman amp Diu
Pipeline Systems Limited
Co IFS IFS Court 28 Cybercity
Ebene Mauritius
PSL USA INC
Corporation Trust Center 1209 Orange Street
Wilmington New Castle 19801
Delaware USA
45
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
PRINCIPAL BANKERS
ICICI Bank Limited
State Bank of India
Bank of Baroda
Standard Chartered Bank
Export Import Bank of India
IDBI Bank Limited
Axis Bank Limited
BNP Paribas
State Bank of Patiala
State Bank of Hyderabad
Indian Overseas Bank
Union Bank of India
ING Vysya Bank Limited
Yes Bank Limited
DBS Bank Limited
Deutsche Bank
Indian Bank
Kotak Mahindra Bank
Development Credit Bank
REGISTERED OFFICE
Kachigam Daman
Union Territory of Daman amp Diu - 396 210
CORPORATE OFFICE
46
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
LEGAL amp SECRETARIAL OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
MARKETING OFFICES
- In Western India
PSL Towers
615 Makwana Road Marol Andheri ( E )
Mumbai - 400 059
- In Northern India
ldquoPSL HOUSErdquo
B-96 Greater Kailash ndash I
New Delhi - 110 048
- In Southern India
Meridian House 82 Montieth Lane
Egmore Chennai - 600008
PROJECTS OFFICE
3rd Floor lsquoPunj Housersquo
M-13 A Connaught Circus
New Delhi - 110 001
47
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
VISION
THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020
MISSION
In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees
A continued investment in Research amp Development Building and nurturing engineering talent
Developing a culture that fosters teamwork and enhances leadership abilities
Forming strategic alliances in order to move up a diversified value chain within the energy industry
The highest standards of corporate conduct and ethics
Ensuring the highest levels of customer satisfaction for every customer across geography and scale
48
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
DEPARTMENT AT PSL LTD
Administration Office
Pipe Mill-V1
Store-V1
QaQc Plant Office
YardAuto Department
CML Plant
Pipe MILL-NC
Store-NC
Laboratory
QAQC Main Office
49
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Pro
QUALITY POLICY
PSL Limited which is into manufacturing of steel pipes pipe mills and
machinery as well as anticorrosive coating of steel pipes are committed to supply
products on time and at competitive prices to the total satisfaction of customers
stated and implied needs while complying with relevant statutory and legal
requirements
In our integrated efforts we commit to continually improve quality of
products prevent pollution and reduce occupational health and safety hazards in
our process
We commit ourselves to supply defective-free product at competitive price
and in time To satisfy our customer and continuously improve the effectiveness
of the Quality System Management
Objectives
Training of personal at all levels
Bring out quality awareness in each activity performed by all employs
Continuous improvement in process Technology To reduce defecit cost
amp work
50
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
PRODUCTION DEPARTMENT
Production department is a heart of the company It is the most
important department of the company The production function of a
business is concerned with the creation of a product or service required to
satisfy customer needs wants and desire
Pipe Manufacturing (HSAW)
Manufacture large diameter (18 to 120 inches) HSAW pipes of varying
thickness between 5 mm to 25 mm
HSAW pipes are extensively used for the transmission of oil gas and water
Key projects executed
Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply
Vijaipur- Dadri Bawana pipeline
Pipe Coatings
Provide pipe coating services which include pipe corrosion protection
3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel
Coating Concrete Weight Coating Internal Coating etc
Key projects executed
Baherika Naka Project Hazira-Bijapur Jagdhispur
Ancillary Products and Services
Induction bends
Capacity to manufacture pipe bends of various diameter up to 48 inches
Sacrificial anodes
Capacity to manufacture in excess of 1500 tape of sacrificial anodes
51
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Reinforcement bar (rebar) coating
Prevents corroding before they are put to use in construction
Manufacturing of turnkey HSAW plant and machinery
Design and manufacture machinery and equipment catering to the pipeline industry
52
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
H-SAW PIPE MANUFACTURING
Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall
thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are
manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill
RAW MATERIALS
Our results of operations are subject to the availability cost and quality of our key material
ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at
the time of process of pipes
Cost Effective Transportation through pipelines is cost effective as compared to the
other means of transportation such as roadways or railways
Stability Transportation through pipelines is stable as compared to the other means of
Transportation They generally have a life of around 15 to 20 years once the pipeline network
is being set-up
Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to
the other means of transportation like roadways or railways
No pilferage They overcome the problem of pilferage as compared to the other means of
transportation There is nil or negligible threat of transit loss in case of transportation through
pipelines
Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of
gases and pollutants in the atmosphere as compared to the other means of transportation
Efficient land use Pipelines are generally underground and there is no disturbance of
land due to their usage
Multi-product transportation More than one product can be transported through
the same pipeline without purgingcleaning procedures
Supply unaffected Transportation through pipelines are unaffected by strikes cyclones
floods etc which may affect other means of transportation
53
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Process of HSAW
Spiral pipes are produced by shaping HR coils into spiral form
and continuously welding the seam inside and outside
Various pipe diameters can be produced from the same strip width by changing the forming
angle
Forming stand unit HR coil to make it straight
Welding stations
Cutting and clining
Quality control
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Testing Facility
54
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Non-destructive Testing Destructive Testing
Hydro-static Test
Online Ultrasonic Testing for HR Coil
Off-line Ultrasonic Testing for pipes
Real time Radiography
Film Radiography
Magnetic Particle Inspection
Visual Dimensional Inspection
Hardness Test
Charpy lsquoVrsquo Notch Impact Test
Drop Weight Tear Test
Hydrogen Induced Cracking
Sulphide Stress Cracking (Four point Bent-
Beam method amp Tensile Test method)
Tensile Test
Guided Bend Test
Micro amp Macro Vickers Hardness Test
Micro Examination
The making of Spiral Weld pipes
Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the
correct helix angle Before passing the strip through the leading and trailing ends of the
incoming and already inserted coil strip respectively are welded together The edges are then
machined simultaneously on both sides by an edge miller In the forming section a 3-roller
bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of
the incoming strip are brought into low point contact and the resulting butt joint is
continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired
length with a plasma torch
HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING
55
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall
thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are
manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3
00000 MT depending upon order mix
Helical Two Step Technology Pipe mill consisting of the following steps
First Step Pipe Formation Unit
Coil opening operation
Coil flattening operation
Welding coil to coil butt ends for continuity
Pipe forming operation
Continuous tack welding of the formed pipe
Pipe end cutting operation
Second Step Final Welding
Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers
Welding lines
Following operation is undertaken here
Continuous internal welding
The duly welded pipe is discharged from the welding line for processing of the pipe ends
56
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
End beveling station
Hydro-testing station for testing of each pipe
UT Ultrasonic testing station for NDT weld flaw detection
End X-ray continuous radiography
Finishing station and final inspection station
Pipe manufacturing capabilities using different technologies
Pipes LSAW HSAW
Diameter (inches) 16-56 18-120
Thickness (mm) 48-38 5-25
Pressure High High
PIPE COATING
On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently
57
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines
Range of coating services available for the most stringent of pipe-coating applications
bull POLYETHYLENE (PE)
DETAIL
bull COAL TAR ENAMEL (CTE)
DETAIL
bull FUSION-BONDED EPOXY (FBE)
bull CONCRETE WEIGHT COATING (CWC)
bull INTERNAL COATINGS
POLYETHYLENE
The process is characterized by applying three successive coating layers on
external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS
055900
The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by
electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade
or as recommended by the powder manufacturer
58
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
The second layer is adhesive (200 micron020mm) which is applied by lateral
extrusion over the epoxy layer when the epoxy powder is still in the polymerization
phase at a temperature of 210-230 degrees centigrade
The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion
on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted
according to the requirement The pressure roller is used to prevent air entrapment in
the PE layer
COAL TAR ENAMEL
The coating system consists of applying a coat of coal-tar enamel having a
minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-
fiber mat
A second coat of coal-tar enamel having a minimum thickness of 2400
micron24mm follows this and wrap of glass-fiber mat followed immediately by an
outer-wrap of coal-tar impregnated glass fiber felt
The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm
+- 1000mm When the protrusion of weld seam interferes with this thickness the
thickness of the coating above the weld seam should meet the specified thickness
FUSION-BONDED EPOXY
Fusion bonded epoxy coating offers a robust single-layer coating applied by using
electrostatic spray guns and which provides excellent adhesion flexibility and a marked
resistance to cathodic disbandment ndash even at elevated pipeline temperatures
CONCRETE WEIGHT COATING
Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface
59
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed
INTERNAL COATINGS
INTERNAL CEMENT MORTAR LINING
A mixture of cement mortar is typically used as protective interior lining of steel
pipe Applied centrifugally cement mortar lining provides a smooth dense finish that
protects the steel pipe from tuberculation and also affords a measure of corrosion
resistance Additionally the smooth interior surface of cement mortar lining provides a
high flow Cement mortar-lined steel water pipe is durable easily handled in the field
and can be repaired with minimal difficulty
MARKETING DEPARTMENT
International Marketing is finding out what customers want around the world and
then satisfying these wants better than other competitors both domestic and
international They observe that international marketing has dual aspects viz foreign
marketing and global marketing
According to Keegan ldquoglobal marketing is the process of focusing the
resource(people money and physical assets) and objectives of an organization on
global market opportunities and threatsrdquo
60
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
ldquoMarketing management is the process of planning and executive the conception
pricing promotion and distribution of ideas goods and service to greate exchange that
satisfy individual and organization objective market is formally carried out by the sales
managerrdquo
Customer ONGC (Oil amp Natural Gas Corporation Limited)
GAIL (Gail India Limited)
IOCL (Indian Oil Co-operation Limited)
DPCL (
Narmada Project
Majour Orders
Oil
1048708 Mundra-Bhatinda pipeline I INR 9355 mn
1048708 Mundra-Bhatinda pipeline II INR 4091 mn
1048708 Dadri Panipat pipeline INR 1656 mn
Gas
1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn
1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn
1048708 Cagmeg SPA Algeria INR 731mn
Water
1048708 Barmer lift water supply INR 3080 mn
1048708 Indore Municipal Corporation INR 507 mn
Others
1048708 Indira Gandhi super thermal power INR 608 mn
1048708 Coimbatore Municipal Corporation INR 357 mn
1048708 Raghunanthur thermal power INR 141 mn
61
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
1048708 DJB Dwaraka water supply INR 233 mn
Special Problem in International Marketing
Political and Legal Difference
Economic Difference
Culture Difference
Difference in the Currency
Difference in the Language
Difference in the Marketing Infrastructure
Trade Restriction
High Costs of Distance
Difference in Trade Practice
MARKET SEGMENT
A firm has also to make a strategic decision about the segmentsegment of the
foreign market that it should enter
The segmentsegment that a firm may enter depends on a number of factor like the
firm related factors (the size and resource of the firm its product mix marketing
characteristics of the firm etc) product related factor (for example whether it is an
62
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
innovative product ) competition factor ( the strengths and weakness of the competitors
the extent of a competition in the different segment etc) and other market-related factor
like the size and characteristic of different segment growth prospect of different
segment etc
63
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Marketing Channel
In international marketing there are two sets of channels to be consideredviz the
channel between nation and the channel within a nation The decision about the
channel between nations pertains to the determination of the appropriate mode of
entering the overseas market This involves first of all the choice of the location of the
production base
Direct Exporting
As the name indicates direct export refers to the sale in the foreign market directly
by the manufacturer The manufacturer may make the sale directly to the foreign
customer or to a middle man or middle man located in the overseas market In both the
cases the export is direct-manufacturer does not use any independent middleman in
the channel between the home country and the overseas market
64
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
The Direct Exporting channels are as shown as under
PRODUCER
Importer Distributor Government State Buying Industries Department Organisation Buyers
Wholesalers Retailers Customer Joint Ventures
Licensing
Importers The importers who buy on their own account may sell the product to the
distributors industries and other institutional customer wholesaleretc
Distributors A distributor who buy directly from the exporter and holds large stocks of
a product has an exclusive right to sell the product in a particular area or to a particular
type of customer
Government Department In some countries government department buy large
quantities of certain goods often on a long-term basis These are generally essential
goods of mass consumption or use in government departments
State Buying Organization In some countries the import of goods are done by the
government organization like state trading organizations This was the case until
recently in the centrally planned economics In India imports of several commodities
are canalized ie only designated government agencies can import these goods
65
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Wholesalers Although wholesaler often buys from the importers or distributors there
are also wholesalers who buy directly from the exporter
Retailer Large retailer may buy directly from the exporters Department stores
supermarkets or other types of chain stores are among the most important direct retail
buyers Other retailers may depend on distributors or wholesalers
Joint-Ventures and LicensesFranchise A very important export marketing channel
that is growing in popularity is the collaborative arrangement between exporter and
foreign firm
Joint ventures ie enterprise in which both ownership and
management are shared by firms from two or more countries are very common
between firms from developed and developing countries
Indirect Exporting
There are two method are available for indirect exporting
(1) International marketing middleman and
(2) Co-operative organizations
International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not
(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper
(2) Agent Brokers
Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers
There are two distinct types of co-operative international marketing organization (1) Piggyback marketing
(2)Export combinations
66
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own
As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit
Competitive environment
The large diameter pipe industry in India and globally is highly competitive We face
Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes
while bidding for new contracts Among the organized sector we consider our three principal
competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man
Industries Limited We sometimes face competition from the unorganized players but that is
mostly restricted to smaller orders in the water segment There are no unorganized players for
oil and gas pipelines since such pipes require API certification and have stringent quality norms
The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008
Exports 71517 550643Domestic 3577397 1742468
67
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Finance Department
MrKRamanathan
Finance Officer Chief Finance Officer
Finance is regarded as the lifeblood of a business enterprise This is because in the modern
oriented economy finance is one of the basic foundations of all kinds of economics activities It
is the master key which provides aces to all the sources for being employed in manufacturing
activities It has rightly been said that business needs money to make more money
According to Solo man ldquoFinancial Management is concerned with the efficient use of an
important economics resources namely Capital Fundsrdquo
Classification of Sources of Finance
According to Period
(1) Long term sources viz shares debentures long term loans etc
(2) Short term sources viz advances from commercial bank public deposit
advances from customer and trade creditors etc
According to Ownership
(1) Own capital viz share capital retained earnings and surplus etc
(2) Borrowed capital such as debentures public deposits and loans etc
According to Sources of Generation
(1) Internal sources viz retained earnings depreciation funds etc
(2) External sources viz securities such as shares debentures loans etc
Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of
the firm (3) Share holder wealth maximizations rather than on profit maximizations
68
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Information relating to HRM
Human Resources Management is concerned with the people who work in the organization
to achieve the objectives of the organization It concerns with acquisitions of appropriate
human resources developing their skills and competencies motivating them for best
performance and ensuring their continued commitment to the organizations to achieve
organizations objectives This definition applies to all types of organizations eg industries
business government educations health or social welfare of the people
We are also subject to labor and employment laws which regulate the minimum wages
payable to employees maximum working hours additional payments for overtime work the
hiring and terminating of employees the engaging of contract labor health and safety of the
employees and work permits Failure to comply may result in pecuniary andor criminal liability
and adversely affect our business and financial condition
Objectives
(1) To provide create utilize and motivate employees to accomplish organizations goals
(2) To secure integration of individuals and groups in securing organizational effectiveness
(3) To create opportunities to provide facilities necessary motivate to individuals and groups
for their growth with the growth of organizations by trainange and development
compensations
(4) To provide attractive equitable incentives reward benefits social security measures to
ensure retention of competent employees
(5) To maintain high moral encourage value system and create environment of trust mutuality
of interest
(6) To provide opportunities for communication expressions participation appreciation
recognition and provide fair efficient leadership
69
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from
employees
(8) To ensure that there is no threat of unemployment inequities adopting a policy
recognizing merits and employee contribution and conditions for stability of employment
FUNCTIONS OF HRM
70
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
HRM OBJECTIVES Function to be Performed
Social (1) Legal compliance
(2) Benefits
(3) Union Management relations
Organizational (1) Human Resource Planning
Objectives (2) Selections Training
And Development
(3)Employee Relations
(4) Employee Evaluation Assessment
Appraisal
Functional objectives (1) Appraisal
(2)Placement
Personal objectives (1) Training amp Development
(Toward is employees) (2) Appraisal
(3) Assessment placement
(4)Compensation
71
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund amp Family Pension
Fund all charged to the Profit amp Loss Account as incurred
Gratuity to employees is covered under the Group Gratuity cum Life
Assurance Scheme and superannuation to employees is covered under
Group Superannuation scheme of Life Insurance Corporation of India and
Annual contribution to such schemes is charged to Profit amp Loss Account
Accrued liability up to the date of Balance sheet is provided
For the year ended March 31 2009 provision for Employees Benefits
Amounting to Rs636 million towards Leave Encashment has been made to SBI
Life Insurance Co Ltd Mumbai
Employees
As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand
454 worked in our corporate headquarters and other administrative offices None of our
employees belongs to a union and we have not been subject to a strike or other material
labour disturbance
In addition to our employees we rely on contractors who engage on-site labourers for
performance of many of our unskilled operations We are registered as a principal employer
under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is
required to be renewed periodically As at June 30 2009 we had 1360 contract labourers
working for us
The total remuneration of our employees includes a base salary bonuses and
allowances In addition to an employee contributing 12 of his or her salary into a provident
72
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
fund we also contribute an amount equal to 12 of that employeersquos base salary to the
provident fund
Human Resources has always been most valuable asset for PSL and the company constantly
seeks to attract and retain the best available talent Human resource management incorporates
a process driven approach that invests regularly in the training and development needs of its
employees through succession planning job rotation on the job training and extensive training
workshops and programs The company holds various employee engagement programs in order
to bolster employee morale inculcate a feeling of team work and create a mechanism to
recognize individual and team contributions to the organization The employee turnover for
many years at a stretch is adequate evidence of the successful operation of the aforesaid
philosophy of the Company With the work force of more than 2500 individuals comprising of
very well experienced staff and competent Executives at different levels virtually no industrial
problems are experienced by the Company at any of its Units
73
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
EXPORT PROCEDURE
Some preliminary steps have to be taken before an export transaction begins
IEC Number
Every person (whether an individual firm or company ) importing or exporting goods required
an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally
allotted by the regional licensing authority
Membership-Cum-Registration
Membership of certain bodies will help the exporter in a number of ways There are specific
Export Promotion Councils for various productsproduct groups Members of EPC receive
different kinds of assistance and services in respect of the export business
Export will also benefit from membership of other organizations like India Trade Promotion
Organization (ITPO)
(a) Registration with EPCFIEO
(b) Registration with Sales Tax Authorities
Inquiry and Offer
An inquiry is a request from a perspective importer to be informed of the terms and
conditions of sale It may contain full details of the goods required their description catalogue
number or grades sizes weights or other distinguishing features time and method of delivery
etc
The offer made by the exporter is usually in the form of a Performa invoice This is an invoice
sent in advance to the buyer before the shipment is made and usually includes details of the
product to be supplied their quantity quality value including freight insurance and other
charges the method of payment the condition of sales etc Often buyer open letters of credit
74
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
on the basis of the Performa invoice It is therefore necessary to take approximate freight
charges on the higher side than on the lower
75
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Confirmation of Order
The confirmation of the order usually takes the form of a contract There is no hard and fast
rule for the terms that may be mentioned in an export contract However the contract should
contain details of goods their quantity quality price period period of deliveryshipment
packing and marking terns of payment licenses insurance documentary requirementetc
Export License
The export of some items are banned and some items controlled by means of licences
though many items are permitted to be exported freely Needless to say that exporter should
make sure that item sought to be exported is not one which falls in the banned list If the item
to be exported requires a license it is necessary to obtain it before finalizing the contract
Finance
If the exporter requires pre-shipment financial assistance he should take the necessary
steps to obtain it
Production Procurement
Once the order is confirmed the exporter should take necessary steps to ensure the timely
availability of the goods of the specifications required and execute the exporter order promptly
Shipping Space
As soon as the exporter order is confirmed the exporter should contract the shipping
companies which have selling for the port to which goods have sent and book the required
shipping space
Packing and Marking
Once the exporters are ready they are packed and marked properly If the buyer has
given instructions about packing and marking they should be followed accordingly The Bureau
of Indian Standard has prescribed packing standards for certain item Shipping companies also
give certain packing instructions especially for highly dangerous goods
76
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Quality Control and Pre-Shipment Inspection
Needless to say goods should be exported only after ensuring that they are of proper
quality If the quality of the goods exported is not satisfactory it will affect the image of not
only the exporter but of the whole nation The government has also taken some step in this
regard The Export Act 1963 empowers the government to issue a notification about the
commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection
Scheme
Excise Clearance
As a matter of policy the government has granted excise duty exemption for export
product
Custom Formalities
Goods may be shipped out of India only after Custom clearance has been obtained For
this purpose the exporter should present the following documents to the customs authorities
are as under
(1) Shipping Bill
(2) Declaration regarding truth of statement made in the Shipping Bill
(3) Invoice
(4) GR Form
(5) Export License Quality Control Inspection Certificate (wherever required)
(6) Original contract wherever or correspondence leading to contract
(7) Contract registration certificate (wherever applicable)
(8) Letter of Credit
(9) Packing List
(10) AR-4 Form
(11) Any other documents
77
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Exchange Control Formalities
The exchange control regulations required all the exporter to
(a)Make a declaration on the prescribed form to the Collector of Customs that foreign
exchange representing the full export value of the goods has been or will be disposed of in
manner and within the period specified by the RBI
(b)Negotiate all shipping documents including those relating sales on consignment basis
through authorized dealers
(c) Receive payment by an approved method
(d) Surrender the foreign exchange received from export to the exchange control authority
through authorized dealer
Insurance
The goods that are exported may be subject to certain maritime perils The risks of such
perils may be covered under certain marine insurance Who should bear the cost of the
insurance depends on the terms of the sales For instance under the CIF term insurance is the
responsibility of the exporter
Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance
Corporation of India The National Insurance Company The New India Assurance Company
The Oriented Fire and General Insurance Company and General Insurance Company
The ECGC covers certain export risks which are not covered by the general insurers
78
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
Shipping the Goods
Goods may be exported to foreign markets by sea air land road post and river
Negotiation of Documents
The set of negotiable documents usually consist of the following
Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of
Origin Marine Insurance Policy Bill of Lading
Export Incentives
If the exporter is entitled to any export incentives he should take the necessary steps to
realize it
Export Documents
Commercial Documents
The commercial documents are those which by customs of trade are required for
effecting physical transfer of goods and their title from the exporter to the importer and
the realization of export sale proceeds
14 out of the 16 commercial have been standardized and aligned to one another
Principal Export Documents
(1) Commercial Invoice
(2) Packing List
(3) Bill of Lading
(4) Combined of InspectionQuality Control (where required)
(5) Insurance Certificate Policy (In case of CIF export sales contract)
(6) Certificate of Origin
(7) Bills of Exchange and Shipment Advice
Auxiliary Documents
79
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-
MATIN VOHRA
The remaining 8 commercial document are known as the auxiliary
documents They are as follows
(1) Proforma Invoice
(2) Intimation for Inspection
(3) Shipping Instruction
(4) Insurance Declaration
(5) Shipping Order
(6) Mate Receipt
(7) Application for Certificate of Origin
(8) Letter to the Bank for CollectionNegotiation of Documents
Regulatory Documents
On an average there are 9 regulatory documents associated with the
preshipment stage of an export transaction are as follows
(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities
(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities
(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities
For Export of goods
For Export of duty free goods
For Export of dutiable goods
For Export of goods under claim for duty drawback
(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust
copy of Shipping Bill
(5) Receipt for payment of Port Charges
(6) Vehicles Ticket
(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms
(8) Freight Payment Certificate
(9) Insurance Premium Payment Certificate
80
- Vision
- Mission
- Port Operations
- IT SUPPORT
- FIRE SERVICES
- SUPPORT SERVICE AT MUNDRA PORT
- BUNKERING
- TUGS
- CUSTOM BANKING
- MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits
-