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INTRODUCTION:
General Introduction
The steel industry is experiencing one of the longest upswings periods for many
years. Since the beginning of 1987, steel production is riding for almost 29 months'
with1988 bringing an increase of western world output to 488 million metric tons
of crude steel or Seymour than users also becoming all the economic growth and
country builds stadium for the 2008 Olympics in Beijing.
These favorable prospects raise hopes that steel makers are into a period of greater
stability It would seem as if the painful economic adjustment process, which has
been lasting for many years, is nearing completion, and that the adoption of steel
capacities' technologies and management attitudes to the changed patterns of
economics growth Tate are finally starting to bear fruit. India is gifted with large
quantity with high ferrous content, which is the crucial raw material for producing
the steel. Hence India is largest procedure of the steel in the world.With the help of
liberalization, globalization of economy in the process, there is as scope for
economic development, which means there will be focus on infrastructure this will
lead to considerable demand for steel. As its main application are in the
construction Engineering and automobile sector, which are the key elements in
building infrastructure. Steel is universe intermediate and has very strong forward
linkages hence steel industry has become one the core sector of the
economy.Though India one of the large steel procedure, it has low percent
consumption of steel in comparison with developed countries. India is fortunate in
having intensive iron ore deposits with estimated at 10.3 Billion which is more
than 1\4th of the world reserves. Further the average iron ore content of India is
above 60%. In India the iron ore reserves are mainly found in the states like Orissa,
Karnataka. Bihar, M.P, Goa, A.P, Rajasthan and some parts of western
JSS SMI UG & PG STUDIES DHARWAD.
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Maharashtra. When we think of the steel Industry, the first thing that comes in to
our mind is pig iron. This is because of its name. When metal from blast furnace is
paired into Moulds and solidifies it assumes a Shape which resembles the back of a
pig, hence called as pig Iron.
CORPORATE OFFICE:
Head office: Hospet
Branches: Kolhapur
Delhi
Ahmedabad
Coimbatore
Dealers: Belgum
Hyderabad
Vijaywada
Coimbatore
Banglore
Kolhapur
Nagpur
Ahmedabad
Rajkot
Kolkata
Jaipur
Agra
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At a very early stage the former USSR & a British consortium also showed an
interest in establishing a modern steel industry in India. This resulted in the Sovietaided building of a steel mill with a capacity of 1 million tons in Bhilai & the
British backedconstructi-cl1 in Durgapur of a foundry which also has a million
tonnes capacity.
Background of the Steel Industry
The establishment of Tata Iron & Steel company (TISCO) in 1907 was the starting
point of modern Indian steel companies were established namely Mysore Iron &
Steel Company,(later renamed Vishveshvaraya Iron & Steel limited)
in1923,Steelcorporation of Bengal (later renamed Martin Burn Limited & Indian
Iron & Steel limited) in 1923, &,Steel corporation of Bengal (later renamed Martin
Burn Limited & Indian Iron & Steel company in 1939.
World steel Industry
Steel, the recycled material is one of the top products I the manufacturing sector of
the world. The Asian countries have their respective dominance in the production
of the steel all over the world.India being one among the fastest growing
economics of the world has-been considered as one of the potential global steel
hub internationally. Over the years. Particularly after the adoption of the
liberalization policies all over the world, the world steel industry is growing very
fast.
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The following table shows a clear picture upon the major Crude Steel
Procedure in the Worlds as of the year 2010:
Country
China
626,654
Japan
109,600
United state
80,594
Russia
67,021
South Africa
58,453
Germany
43,815
Ukraine
33,559
Brazil
32,820
India
66,848
Italy
25,751
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DEMAND
AVAILABLITY
1990-00
2900
4016
2001-02
3100
4322
2002-03
3300
4650
2003-2004
3600
4900
2004-2005
3800
5750
2005-2006
4100
5233
2006-2007
4400
5474
2007-2008
4600
5689
2008-2009
4100
5434
2009-2010
4300
5725
2010-2011
4200
5535
2011-2012
4400
5478
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DATA COLLECTION
Primary Data:
Primary data required for the study is collected from the KIRLOSKAR FERROUS
INDUSTRIES LIMITED. Office.
Secondary Data:
This includes information relating too
Annual reports.
Company broachers, magazines, periodical reports.
Published text books.
Internet.
LIMITATIONS OF THE STUDY:
This study was limited to that particular organization.
This study was restricted within the organization campus.
The study cannot be taken as representative of the other steel industry in the
state.
The study was based on the published reports and information collected
from the companys senior personnel. However the study could not gather
information from the company do policy makers consumers, dealers and
others share holders.
The study was limited by the time span i.e. four weeks.
To make continuous efforts to sustain and improve the quality and
productivity levels and attain consistent results.
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INDUSTRY PROFILE:
Industry growth linked to the growth of end-use sectors and influenced by
macroeconomic scenario
India is gifted with large quantity of Iron ore with a high ferrous(Fe) content,
which is the crucial raw material for producing the Steel; hence India is one of the
largest produces of Steel in the World.
The steel industry is experiencing one of the longest upswings periods for many
year. Since the beginning of 1987, steel production has riding for almost 29
months, with 1988 bringing an increase of Western world output to 488 million
metric tons of crude steel, or 8% more than in 1987.
Demand from neighbouring China the words first biggest steel maker and users
also becoming all the economic growths and country builds stadium for the 2008
Olympics in Beijing.These favorable prospects raise hopes that steel makers are
into a period of greater stability. It would seem as if the painful economic
adjustment process, which has been lasting for many years, is nearing completion,
and that the adoptions of steel capacities, technologies and management attitudes
to the changed patterns of economics growth are finally starting to bear fruit.
Government policies and the International Monetary system with pegged but
Adjustable rates and U.S .dollar as a reserve currency has favoured this rapid
growth. This period is commonly called the post war reconstruction period.
The intensity of steels economic growth was rising by a vast rate between1950-60.
In Western Europe, steel jumped by 30%, in Japan by 58% and in Brazil by 41%.
The effect of steel consumption increased by an average of 5.2% in the year 1950
to 1960. The industrialized countries expanded their steel use by 4.8% per annum.
The developing nations did so by as much as 8.9%.
JSS SMI UG & PG STUDIES DHARWAD.
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Between 1960 and 1970, Western World steel consumption grew by 5.7% a year,
with the industrialized countries expanding their steel usage by 5.6% a year and the
developing countries by as much 6.5% a year. Another important influence on steel
intensity is the replacement of steel by other materials. Calculating that portion of
the reduction in the specific consumption of the steel that is due to the use of other
materials is extremely difficult.
However, estimates made by the International Iron and steel institute would seem
to indicate that for all of the Western industrialized countries the rate of
substitution of materials such as plastics, aluminium, glass and timber for steel is
presently standing at between 2 and 5 percent of steel consumption.
Earlier to the Government liberalization and de- licensing polices in 1991-92, there
were mainly two pig iron producers in the Indian market; the two pig iron
producers were TISCO and SAIL.
They used to produce basic grade pig iron which contains less silicon content when
conversion to foundry grade pig iron. So when this is used by the foundries they
have and Ferro silicon for the conversion to foundry grade also the availability
quantity of pig iron to the foundries was very much limited because only of ISCO
and SAIL were looking after all the foundries in India.
After the liberalization and de-licensing policies of government and private sectors
showed keen interest in the pig iron manufacturing units that to in the production
of foundry grade pig iron, TATA group in collaboration with Korf brazil started
supplying mini blast furnace of 250 cubic meters.
When blast furnaces were available, many private sectors started. Producing pig
iron among them, sese, Goa and Usha lspat, sisco (southern iron and steel co. ltd).
Unit Metal, Meco, Lanco, sathavana, Kirloskar are main.
JSS SMI UG & PG STUDIES DHARWAD.
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These all pig iron producers started producing mainly foundry grade pig iron with
the help of liberalization, globalization of economy in the process, there is a scope
for economic development, which means there will be focus on infrastructure. This
will lead to considerable demand for steel.
As its main applications are in the construction, engineering and automobile
sectors, which are the key elements in building infrastructure Steel in universal
intermediate and has very strong forward and backward linkages hence steel
industry has become one of the core sector of the economy. Though India one of
the large steel producers. It has low precepts consumption of steel in comparison
with order developing and developed countries. As steel is on the rise we can
expect good rise in consumption.
India is fortunate in having intensive iron ore deposits with reserves estimated at
10.3 billion which is more than 1/4th of the world reserves. Further the average iron
ore content of Indian ore is above 60% in India, the iron ore reserves are mainly
found in the states Orissa, Karnataka, Bihar, M.P, Goa, A.P., Rajasthan and sum
parts of western Maharashtra.
When we think about Steel Industry, the first thing that comes into mind us pig
iron. This is because of its name. To put in to simple words, when metal from blast
furnace is paired in to Moulds and solidifies it assumes a shape which resembles
the back of a pig. Hence name pig iron
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COMPANY PROFILE
The company is promoted by well diversified and established kirloskar group
having vast experience in the field of industrial manufacturing
Year of establishment:
1994
1242
Turnover in (rupees):
Business area:
Product range
Grey iron Castings: 1 Kg- 500 Kg single piece weight
Pig Iron: Foundry Grade, S.G.Iron Grade &Basic Grade
Chairman & Managing Director
Mr.Atul C.Kirloskar-Chairman
Mr.R.V.Gumaste-Managing Director
Manufacturing units
Kirloskar Ferrous Industries Ltd., Hospet.
Manufacturing unit Address: Bevinahalli (Village) P.O. Hitnal 583 234 District
Koppal, Karnataka, INDIA
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agriculture, industry and transport, oil and gas and environment protection with a
range of world-class industrial products and turnkey services.
KIRLOSKAR
FERROUS
INDUSTRIES
LIMITED,BEVINAHALLI
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PRODUCT EXCELLENCE:
Continuously striving for Product Excellence through adherence to
documented work practices, technical and managerial innovation and
continuous improvements.
recesses and products are finest in the country and compare with the best in
the world.
12%
Pumps
11%
Automobile
26%
Pipes
12%
Engines
6%
Fans
3%
Agriculture
10%
Others
20%
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Textiles
Pumps
Automobile
Pipes
Engines
Fans
Agriculture
Others
The above table represents the basic of products differentiation and the list of
industries where these products are used. Chemical composition of the product is
the reason for production for different kinds of products. Mainly products are
differentiated on the basis of silicon compensation. Company has got different
kinds of customer varying between with high or low range of silicon contents.
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Product Mix:
Product/Grade
Differentiator W.R.T.
Chemistry
Foundry Grade
Si 2.0-2.5%
Application Industry
(Examples)
General
Engineering,Automobile,
Sanitary, Castings
Mn>0.9%
P:0.2-0.4%
Spun pipes
P>0.5%
Roding
Room
Applications
High silicon Grade
Ultra
High
Si:2.5-3.0%
silicon Si>3.0%
Fan body
Roding
Room
Grade
Applications
Special
Ductile
Spherical P<0.0%,s<0.025%
Graphite Grade
Iron
Automobile
pipes,
Engine
Block
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ACHIEVEMENTS:
KFIL is the first among few in India to adopt state of our technology with
CNC controller machines consistent quality of pig iron.
KFIL also records the project completion of MBF 1 st within 18 months and
2nd MBF in 9months
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FUNCTIONS OF DEPARTMENTS :
HUMAN RESOURCES
FINANCE
PRODUCTION
PURCHAGE AND STORE
MARKETING
QUALITY ASSURANCE
RESEARCH AND DEVELOPMENT
HUMAN RESOURCE DEPARTMENT
PLACING THE RIGHT PERSON IN RIGHT PLACE AT RIGHT TIME
Human resources management involves researching and addressing staffing needs,
hiring and training the best employees and making sure that these employees turn
out to be outstanding performers. It also includes dealing with performance issues
and ensuring employees personnel and management practices conforms to various
regulations.
In short Human resources management, this is of immeasurable value for an
organization. The HRM department is entrusted with the vital function of keeping
employees happy and thus assisting in enhance the productivity of the company.
Any organization with manpower as its chief capital is a treasure of talent. It
is the HR department which acts as the key to unlock, identify, develop and
utilize employee skills and talents to further individual as well as
organizational goals. The chief functions of the HR department Training and
Development change the management, salary and benefits, industrial and
employee relations and performance appraisal
JSS SMI UG & PG STUDIES DHARWAD.
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The HRM department here at KFIL consideration the employee the foremost and
major resources of the company upliftment of employees growth are at the centre
of organization philosophy of growth, which aims at providing a career in which
the individual can make at the same time better standard?
Company has taken care of employees welfare by providing accommodation
medically and medical reimbursement to self and family subsidized canteen
facility to all employees, free transportation to their residence to the work place.
Company is having officers, club members of their facilities meet and participating
in various activities of recreations.
Higher level of satisfaction is reflected through:
Reduction in absenteeism
Reduction in accidents
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Increase production
Increase productivity
Cost efficiency
Reduction in wastages
Innovations.
Only machine cannot perform all the work, they need the assistance of human who
is key for their operations. In KFIL [HRM & GA] constantly take care for each
employee right from his induction to his performance recognition, personnel
department required to guide the people at work and organize them to achieve the
best result. Human Resources department coordinates all other departments and
helps them to work effectively. This department performance all those functions
which creates a sense of belongingness among all the workers, A part from this is
also maintained to have a cardinal relationship between others industries.
FUNCTIONS:
Adoption of improved work practices to foster the intellectual capital
Develop people with high degree of entrepreneur ability and leadership
qualities.
Develop emotional togetherness for strong ownership.
Defining the role & responsibilities of employees to generate empowerment
and right leadership.
Encouraging teamwork, participation & involvement to effectively deal with
negative residues.
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Recruitment
Performance appraisal
IR activities
Welfare activities
Admin,security
.
And all those functions which helps to motivate the employees and which leads to
increase their morale.
KFIL uses the following sources to recruit the candidates. :
Recruitment
Walk in interviews
Campus interviews
Data bank
Promotion is totally based on merit of the employees. Company believes in
promoting those employees who really contributes towards the growth of the
organization. Company evaluates the performance of the employees by using 270
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degree performance appraisal method company considers the opinion of the major
evaluators they are as follows.
Self appraisal
Superior
Job rotation
Coaching
Other than the usual work process is also performs the other functions like
maintaining the individual relations among other industries, motivating the
employees by conducting the counselling and by implementing continuous training
programs etc.
Authorities and responsibilities of HRM.
Manpower planning, recruitment and selection placement.
Training and development.
Performance appraisal, wage and salary administration.
Security, transport fire and safety.
Industrial relations dealing with government.
Employees grievance handling
General administration including public and guest relations.
Estate management covering horticulture, guesthouse etc.
Administration of welfare activities covering canteen, medical, etc.
JSS SMI UG & PG STUDIES DHARWAD.
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To create a seamless and transparent integration through the supply chain for
by
designed or not.
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processes & systems and continuously improve operational ease and effectiveness.
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4. Shakeout
The solidified metal component is then removed from its mold. Where the
mold is sand based, this can be done by shaking or tumbling. This frees the cast
component, which will still be attached to the metal runners and gates - which are
the channels through which the molten metal travelled to reach the component
itself.
5. Degating
Degating is the removal of the heads, runners, gates, and risers from the
casting. Runners, gates, and risers may be removed using cutting torches, band
saws or ceramic cut-off blades.
6. Surface Cleaning
After Degrading, sand or other moulding media may adhere to the casting. To
remove this surface is cleaned using a blasting process. This means a granular
media will be propelled against the surface of the casting to mechanically knock
away the adhering sand. The media may be blown with compressed air, or may be
hurled using a shot wheel. The media strikes the casting surface at high velocity to
dislodge the moulding media (for example, sand) from the casting surface
7.Finishing
The final step in the process usually involves grinding, sanding, or machining the
component in order to achieve the desired dimensional accuracies, physical shape
and surface finish.
QUALITY DEPARTMENT: As there are two divisions in the company the
quality department for each department is different. Quality inspection is
carried out for both the incoming raw materials and outgoing finished goods.
The raw materials should be as per the standard size, volume and with
chemical composition and metallurgical composition.
JSS SMI UG & PG STUDIES DHARWAD.
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ARL Spectrometer
Chemical laboratory
Sand laboratory
QUALITY CONTROL
The blast furnace is highly instrumented and is monitored continuously.
Times and temperature are checked and recorded. The chemical content of the iron
ores received form the various mines are checked, and the ore is blended with other
iron ore to achieve the desired charge. Sample are taken from each pour and
checked for chemical content and mechanical properties such as strength and
hardness.
QUALITY ASSURANCE DEPARTMENT:
The company is committed to achieve total customer satisfaction through
adoption of State of the art manufacturing technologies and process with
continuous improvements. The company is also committed to improve quality of
work life of its employees through improved work practices.
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Quality objectives:
The following are the objectives of quality assurance department. They are as
under:
A) Customer satisfaction: Maximization of customer satisfaction by
consistent supply of quality casting and pig iron.
B) Supplies Quality Assurance: Provided technical support and to our
suppliers through quality assurance
C) Programmers to ensure highest quality of purchased materials suppliers it is
a critical link in company quality system.
Quality system:
To provide guidelines to establish, Document & maintain a quality a
means to ensure that product conforms to requirements. To outline structure of
documentation in quality system. Trade line document the quality planning is done
to meet the requirements of product.
Methods:
A.
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MARKETING DEPARTMENT
Marketing is the process of communicating the value of a product or service
to customers for the purpose of selling the product or service. It is a critical
business function for attracting customers.
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MISSION.
A family committed to growth and prosperity of the organization through
leadership attributes and quality orientation of people and process that
continuously satisfy the customers with their ever changing needs.
MARKETING POLICY:
In the direction of achieving the companys mission, the marketing teamPIP endeavours for maximization of sales and realization for the company products
while meeting the customers requirement to heir all round satisfaction.
The marking department is mainly focus on the activities of Marketing
products, Pricing, Promotion and Distribution of products. These activities
collectively called as 4 ps in marketing.
Products: The Company has following products in its product line.
They are:
1. Basic Grade Pig Iron.
2. Foundry grade pig Iron.
3. Spheroidical Grade pig Iron
Pricing:
The name Kirloskar itself is the mark of quality for the customer. The
company has left the opinion of transporting pig Iron to the Buyers site to the
Buyer. So one can buy the pig Iron at the companys site or can order.
The company has come across different prices terminologies.
They are:
JSS SMI UG & PG STUDIES DHARWAD.
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List price
Discount
Allowance
Payment periods
Credit Term
List price is nothing but the selling price. It is also called as Basic Price.
Basic price=production Cost +profit
Production cost includes both variable cost and fixed cost.
If the transport is undertaken by the company then boarded price is calculated
according to sites mentioned in receipt.
Recorded Price = Basic + Freight +CED (central Excise Duty)
A discount of RS.100 / -PMT is to the regular and bulk buyers.
Price of this company pi iron are comparatively more when compound to
competitions, even with this more price also the company has succeeded in
reaching top market share holding position in the pig Iron market & Foundry.
People prefer this company pig Iron because the following reasons:
a. High quality
b. Fixed Chemical composition
c. Test Certificates are issued with every load
d. Almost 0% impurities & slag mix up
If customer demands for 2.25% silicon, Then the company will supply
exactly wit this proportion, where as others supply with range
between.2.25% silicon etc.
JSS SMI UG & PG STUDIES DHARWAD.
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In this company, pig Iron is melted once, almost 98-99% pure molten metal is
obtained while as in it is size is almost comfortable for feeding into less opening
firmness. The company brand name helps in attracting customers From the above
points is clear that the company is not using any mark penetrating pricing strategy
to penetrate the market instead it is skimming price strategy.
PROMOTION:
The company has appointed number of dealers throughout India for its
marketing purpose. Each dealer will get Rs. 100 PMT, as commission for the pig
iron is sells.
Credit notes are given to these dealers for their commission. Pig iron is also
sold on credit as one of the promotion tools to attract customers. Credit time
depends on areas (less credit period is for North Zone) and order they give.
Distribution:
The company has got distribution network spread allover India in form
of dealership and also through companys employees, the company has divided its
market into 7ZONES:
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Karnataka
Zone B
Andhra Pradesh
Hyderabad, Vijayawada
Zone C
Maharashtra
Kolhpur,pune,
Mumbai,Nagpure,Sholapure
Zone D
Gujarat
Ahmadabad, Rajkot,Surat
Zone E
Rajasthan
Jaipur
Zone F
Delhi
Delhi,Faridabad,
Zodhinoor,Agra
Zone G
Tamil Nadu
Chennai ,Combatore,Madurai
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Marketing Manager
Executives
MARKETING STRATEGY:
On time delivery
Customer orientation
Customer driven
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DIESEL ENGINES:
Kirloskar Oil Engines
Simpson & Co.
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TRACTORS:
Mahindra & Mahindra
Escorts
Tafe
Carraro India
Kerala Agro Machinery Co.
MAJOR EVENTS
1991
1992
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1993
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1994
1995
1996
1997
1998
1999
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2001
2003
2005
2006
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PURCHASE DEPARTMENT
Mission of the purchase department
To ensure the availability of the right quality at right time with right place.
The main function of purchase department is to purchase raw material after
concerning with the production dept and storage dept of raw material is made
depending on the demand of the pig iron in the market and orders from the buyers.
The main ingredients, which are prepared by the company, are as
follows.
A) Ores: This includes iron and manganese ore, which are brought from
the Hospet and Bellary Iron ore belt.
B) Fuels: which includes low ash metallurgical coke as low ash content in
Indian coke there, coke is imported from china and Japan fluxes are
purchased from the Bagalakot and Nearby places they are totally cost
about 150 lacks per month.
C) Others: consumable and spares, diesel furnaces oil etc these are
purchased at required time and they cost about 50 lacks / per
month(approximately)
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STORES DEPARTMENT
In the stores department the items are stored depending upon their time of
utilization.
A) Slow moving: This includes the items which are ors, used very slowly
or very rarely as per the requirements these includes such motors, insure spares
capital items.
B)Non-moving: These items are purchased only at once items are fixed up to the
liquidation of the company.
C)Fast moving : These items used and items are items are ms e stored at
regularly intervals of time these items stored under this category includes raw
materials, consumables spares, production consumable such as landing pipes hock
mats, minimize and reordering quantity, mechanical spares such as oil seals
bearing , drill bits etc.
All the items, which are stored, are consumed on the basis of FIFO the items
which are stored are utilized first depending on their requirements the items which
are stored in stores are first inspected and after inspection tag is attached to that
item.
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FINANCE DEPARTMENT
Finance department deals with various functional activities of the
organization. The books of records of KFIL is maintained by fully own built
software system.
Functions of finance department:
1. Funding activity
Banks provide both long-term and short-term funds.
Long-term funds like debentures, term loans, etc are used for project
financing.
Short-term loans are taken to meet the working capital requirement.
Commercial banks help in providing short term funds.
Individual banks will not finance the whole requirement but
They will share with other banks
.
the head office, so that the corporate office can transfer the funds to its unit. This is
called as Fund transfer booking.
2. Treasury function
They will maintain cash or bank balance book for any payment. They will
use only cheques for making transactions.
3. Book keeping
A company should maintain books of accounts. There is an own built
computerized system including the accounts of sale, purchase, cash/bank, stock,
tax, fixed assets, etc.
JSS SMI UG & PG STUDIES DHARWAD.
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BANKERS:
Bank Of Maharashtra
Axis Bank Ltd.
HDFC Bank Ltd.
Canara Bank
The Hongkong & Shanghai Banking Corporation Ltd.
ICICI Bank Ltd.
DBS Bank Ltd.
SBI Bank
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SWOT ANALYSIS :
Business for us is when you have the time to show that you care
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to
achieve that objective.
A SWOT analysis must first start with defining a desired end state or objective. A
SWOT analysis may be incorporated into the strategic planning model. Strategic
Planning has been the subject of much research.
Strengths: attributes of the person or company that is helpful to achieving
the objective(s).
Weaknesses: attributes of the person or company that is harmful to achieving
the objective(s).
Opportunities: external conditions that is helpful to achieving the
objective(s).
Threats: external conditions which could do damage to the objective(s).
STRENGTHS:
Established market/ brand name
Delivery to customer as per schedule.
Easily availability of skilled and semi skilled human resources due to
presence of villages and ITI, Diploma,and engineering institution nearby.
Wide distribution network
Impact on international steel prices and domestic steel prices.
JSS SMI UG & PG STUDIES DHARWAD.
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WEAKNESS:
As customers expectations are increased day by day it has become difficult
to ssatisfy them completly.
Already at peak utilisation of current capacity.
Total dependence on imported coke
Weakness core expertise on prevention maintenance.
High coke consumption due to higher fines and handling costs due to
multiple handling.
Poor market share in eastern and northern part of the country
company source its entire requirement of sand from a single supplier
company purchase sand which we use in our manufacturing process from
one single supplier i.e. Mangalore Minerals Private Limited based on
purchase orders which are issued on an annual basis. In case, its supplier is
unable to supply sand in the required quality and quantity and the required
time, it may adversely affect their manufacturing process, ability to meet
production schedules
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OPPORTUNITIES:
The company has a good share in the market, scope for further growth.
Improvement in internal and customer end quality growth in Indian foundry
capacity.
Strong financial position makes it possible for the company to adopt new
technology in its operation
Chance of restricting the export of iron in future encourages Indian steel
factory.
As company good market edge, it can market 20,000 per month of foundry
grade pig iron every month.
As the company is committed to produce quality products, it results in
attracting more number of customer and to beat the competition.
THREATS:
1.
2.
3.
4.
5.
6.
Many new steel industries are being raised like mushrooms Hospet and
koppal which may in decline in demand for KFIL products.
7.
Iron ore is a major raw material required for production of pig iron. Delay in
starting of the closed mines may force of the company to source the iron ore
from outside the state. thereby increasing the sourcing cost of iron ore on put
pressure on profitability.
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8.
Demand for the auto and tractors have a direct impact on the performance of
company and adverse market condition for these sectors will result into
reduced capacity utilisation and profitability.
9.
FINDINGS:
KFIL is one of the few foundries which produce automotive and tractor
castings with backward integration with liquid metal from the blast furnace.
This results in significant savings in melting power and ensures supply of
consistent quality liquid metal.
As a part of its corporate responsibility to the society, Company has been
supporting and providing assistance to nearby villages at Hospet by supply of
good quality drinking water and educational assistance for the village people.
Also some basic facilities such as roads, drainages, school building and
medical centre have been provided though the Trust set up by Company.
Biweekly medical checkups by the specialist doctors with medicine is
provided in the neighbouring village. Seed money has also been provided to
rural women for self employment scheme. Financial assistance to needy
farmers and supply of water for irrigation during summer are some measures
taken by the Company.
The manufacturing plants are strategically located near to major customers
and well connected by national highway & railway line.
The closure of mines and non availability of iron ore at reasonable price,
your Company has been able to run both the blast furnaces during the year.
JSS SMI UG & PG STUDIES DHARWAD.
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Commissioning of sinter plant helped the Company to consume iron ore fines
instead of lump ore and get the benefit of price difference and reduction in
coke consumption.
I understand that majority of the employees of the organisation are satisfied
from the recruitment and selection process of the organisation.
It was found that the there is less number of ratios is been maintained in the
books of accounts.
I came to know that most of the employers were influenced by good
incentives and salary.
Canteen facilities are low level of satisfaction.
Lots of wastes coming out from process.
KFIL has very low debt in its capital structure which reflects comfortable
financial risk profile as compared to other players in the industry.
Company construction work is going on
SUGGESTIONS:
The company should take suitable measures to reduce inefficiency,
absenteeism by motivating employees in various ways.
The company should use of sinters to the maximum extent by optimizing
sinter plant operation thereby reducing the cost of iron ore and also
reducing the consumption of coke.
The company should improve the coke procurement strategies.
The employees should be more educated in taking precautionary
measures while they work in dangerous place.
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Conclusion:
The study carried out as a part of the curriculum requirement of BBA. It gave me
a real exposure to the operational procedure of the company. It helped me to gain
the knowledge about the various activates which are carried out in the company.
The 4 weeks in plant training in KFIL has given a detailed knowledge of
management of an organisation and a clear picture of work flow of the complex
organisation. KFIL has a pig iron plant which is used as a basic raw material for
the production of the steel. This study has given a information of how really a big
organisation works by facing so many hurdles. As it is a pig iron plant it totally
covered by the risks and company is successfully overcoming the problems
In the changed market condition the organization needs to focus on the customer
satisfaction, in reaching out this goal are conclusion basis the management has to
constantly upgrade technology product profile internal work process in the end
ultimately it is the employees who will change the performance of the company.
Therefore motivation must find priority.
During the short period of my study of various departments I found KFIL a well
structured organization capable to maintain inter personal relationships among
employees. Employees are very experienced and very dedicated where they feel
company a home.
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ANNEXURES
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BIBLIOGRAPHY
Marketing Management by Philip Kotler,Person Publications.
Financial Management by S C.Kuchal
Annual reports of KFIL
WEBITES
www.kirloskar.com
www.ferrousindustries.in
www.kirloskar.org.com
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