Kirloskar Ferrous Industries Limited

Kiloskar Ferrous Industries Limited

Arko Dasgupta- 12Ashish Otwal- 14Deepak B- 19Naman Srivastava- 30Praveen Kumar- 35Raj Karan Marhas- 38Rohit Sharma- 43Rounak- 45Shreel Diwedi- 49

Corporate Philosophy

Our Vision “To be a product leader in pig iron & casting business” Our Mission To become lowest cost, quality pig iron manufacturer amongst the secondary pig iron plants by: Reduced coke consumption Improved productivity Increased power generation To become preferred partner in casting business by Supply of Quality castings Faster new product development On time delivery

FOCUS MARKETS Pig Iron-Indian foundries catering to Automobile, Tractor, Pump, Textile & Diesel Engine Industry and Secondary Steel Mills

Castings-Automobile Industry,Tractor Industry,Diesel Engine Industry and Locomotive

MAJOR CUSTOMERS OF CASTINGS AUTOMOBILE- Mahindra & Mahindra Ltd.,Tata Motors Ltd.,Toyota Kirloskar Auto

Parts ,Eicher Motors Ltd.,etc

TRACTOR- Mahindra & Mahindra Ltd.,Escorts Ltd.,Carraro India Pvt. Ltd.,TAFE

ENGINE- Kirloskar Oil Engines Ltd. And Simpson & Co. Ltd.

Major customers of Pig Iron

Major Competitors of Pig Iron

Major customers of Casting Iron

Electro steel Castings Tata Metaliks DCM Engineering

Texmo Industries Sesa Goa Ennore Foundries

Rajkot Engg. Association Neco Nelcast

Laxmi Machine Works Dempo Ashok Iron Works

Punjab Tractors Ltd. KISCO (Kudremukh) Menon & Menon

Sriram Piston & Rings Ltd. Satavanaha Ghatge Patil

Indo Shell Mould Ltd. Lanco Ferro Amtek

Kapilansh Dhatu Udyog Ltd. VISA

Ghatge Patil Industries Ltd.

Prashant Castings Ltd.

Questions Leadership

With regard to mission ! What are the aspects you would like to choose apart from quality and cost effectiveness ? Apart from quality and cost effectiveness, they would consider more over building better relations

with our clients i.e. customer satisfaction. For example: recently one of their important customers, Tata, stopped the purchases from

them because of the factors like quality and on time delivery. What kind of balance set of results do you consider while reviewing the progress of your

company ? At present they are producing pig iron using latest automation techniques, thus increasing its

production many folds and planning to enhance its capacity in the coming years. Through this automation process they have decreased the cost while maintaining the quality of pig iron.

For example: Volvo, one of our big customers, placed us on the pinnacle of quality with 85% error free castings.

Questions Leadership

What kind of work culture does your company help in generating and developing of new ideas ? They encourage their employees through various activities so as to help them innovate during the

production. Apart from that they give incentives to those who perform better as well as to do the same in future. They are even being praised for their better performance through gifts in quarterly as well as on yearly basis in annual general meetings.

What are your internals and external drivers leading to change in your organisation ? Internal aspect: employers satisfaction, training and development of employees, working

environment, different facilities provided to the employees. External aspect: customer satisfaction i.e. providing them over all better experience,

building a better relation with the suppliers and distributors.

Strategy

The strategies adopted by KFIL to achieve low cost along with maintaining the qualities are as follows:

By reducing the coke consumption up to 40%By generating small amount of power through the power units within the company.The sand which is generated as a waste after the manufacture of pig iron is reused in the casting process.KFIL has introduced a casting wing, that is fully controlled and automated by robots, hence in turn reducing wastage and production inefficiency. A regular check is kept at every stage of manufacture of the pig iron to insure there is minimum wastage. By adopting improvised techniques of production over time, the ovens which had been used for heating and molding pig iron have recently been improvised with better technology, which uses less power, conserves heat energy for a longer time, as well as makes the heating process faster.

People Strict recruitment process is done from top management colleges and further aptitude test and

3 rounds of interviews .

Different methods of promotion is also taken into consideration. Training and development are done on a regular basis . The company follows both upward and downward communication .

All level of employees have a say in the decision making. The employees are judged via the rating methods . Proper feedback is taken at regular intervals. ( performance management system )

Good safety concerns are followed in each and every department.

Partnership & Resources

What are the parameters you select when it comes to selection of your partners ? Credible client who is having the purchasing power to purchase their products.

What are the policies your company has developed to manage buildings , equipment and materials ? Automation process is being followed. They have two mini blast furnaces in their infrastructure portfolio for manufacturing Pig Iron with

Hot Blast Stoves to pre heat the gases. Sintering facility which includes state of arc equipment and machinery.

Cont… How do you manage to survive in such a dynamic environment ?for example IT

High quality standards - ISO/TS 16949:2009 by Indian Register Quality Systems.

New technologies which decreases the turn around time.

What is your source of information in order to manage effective decision making ? For employees:- Employee management system. For customer :- Taking customer feedback session on regular intervals. For Suppliers :- By arranging various types of meetings with them on regular

intervals and getting feedback from them as well so as to maintain a healthy relationship with them.

Processes , Products & Services

What processes has your company adopted for managing and improving your systems ? Sinter Plant : It agglomerate iron ore fines (dust) with other fine materials at high

temperature, to create a product that can be used in a blast furnace. The final product, a sinter, is a small, irregular nodule of iron mixed with small amounts of other minerals.

New Automation techniques so as to reduce the turn around time.

What factors customers mainly prefer on the products and services ? Optimum quality at a competitive price Logistic facility Process driven work culture Great after sale service

Cont… What kind of marketing techniques does your company follow ?

Business 2 Business (B2B) marketing sales technique. Push marketing Strategy. Participating in various promotional events and conventions. Regular follow up with potential customers. Encouraging partners (Suppliers and Distributers) to take part in decision making processes. Tying up with few online sites. E.g.- India Mart.

If there is any break down in production process, what precautionary measures you follow ? Alternative assembly lines are being used extensively Number of engineers are being hired for taking on time action if there is any break down.

Cont… What are your after sale services ?

As per interactions with marketing head Mr. Renjeet Thomas they collect feedback in different parameters such as quality , lead time , cost matching the expectations of buyers . If any complain launched by buyers they immediately take action with in 24 hrs.

KFIL Dealer Consumer Complaints

KFIL Dealer

Customer resultsWhich factors satisfies the customer on your products ? Service, quality and value to the money.

Volvo ,Mahindra and Mahindra are the main customers.

80% customers are satisfied with the products.

Tata motors has stopped buying the products from the company due to lack of quality and on time delivery.

Most customers see the dimensions of the products and not the quality.

How are the complaints and ordering process taken place in the company ?

Each customer is allotted to one of the employee.

Example: Volvo is allotted to one the employee, he takes the orders and designs.

No one is interfered in this process. The allotted employee takes care of all the order and any complaints.

The complaints will be solved within 48 hours.

Finally the customers are satisfied with the service and products.

People Results

Does your training programme, help in increasing the efficiency level of the employees ? Yes, according to interaction with HR Mr Shanti Bhushan Das, training helps in increasing the

efficiency of employees. This will lead employees to work effectively as they will be having knowledge, skill and capability in performing the task. What are the basic benchmarks when it comes to evaluating your employee ?

It depends upon • Measurable target through employee management system, • Functional areas, • Rating by colleague's.

How do you set targets for the employees ?On the basis of past performance in the various tasks assigned to them and according to

the efficiency of the employee, targets are set with reference to the requirement of need.

Society Results

What are the measure the company takes to make the work place environment friendly ? They are using net to prevent near locality from dust and pollutions. They are having good relation with near locality They are providing Ro purified water to different schools In operations department which risky they are using helmet, safety

shoe ,Google glass, ear plug ,nose mask ,leg guard , hand gloves and face shield to prevent employees from risk.

Received award best green foundry in the year 2004 No issue till now from local bodies No accident happened till now.

Has your company every faced problems from local authorities ? No, till date no issues is being registered.

KEY RESULTSKey Performance indicators

Cash Flow Beginning of the year- 184,025,360End of the year- 136,150,261

Depriciation 291.99 millions

Credit Rating A+ by ICRA (Investment Information and Credit Rating Agency of India Limited)

Return on gross capital employed 15.66% of gross capital

Net current assets 14.01 millions

RADAR Logic For AssessmentAnalysis of Enablers

Element - Leadership AttributesApproach KFIL is determined to maintain its position as

market leader in Pig Iron and Grey Iron Castings business. It lays focus on the organization’s present and future needs. It also has clear basis in strategy and refinements are also embedded as well. It is planning to export its products to other countries as well. They plan to take the competitive edge in whatever way they can.

Sound (25%)

Integrated (50%)

Deployment

KFIL has through the years inculcated the system of first time right process by adopting latest technologies in mould design analysis, prototype and tooling for product development so as to achieve reduced time for development of new product. A new automated plant has been set up for the same at cast iron plant.

Implemented (50%)Systematic (50%)

Assessment and Refinement

The organization is further augmenting its in-house capacity to manufacture pig iron by upgrading the facility using latest technologies in the mini blast furnace. An automated plant has been set up at cast iron plant and it is been thought to expand it over the whole plant and then to other plants as well.

Measurement (50%)Learning & Creativity (50%)Improvement & Innovation (75%)


Element - Strategy Attributes

Approach The organization is further augmenting its in-house capacity to manufacture pig iron by upgrading the facility using latest technologies in the mini blast furnace. The organisation is planning to be present all over its working area for its ease of business

Sound (75%)

Integrated (75%)

Deployment

In respect of castings, they are enhancing their capacity by removing the manufacturing bottle necks and adding additional moulding line for castings with contemporary manufacturing technology. They are opening warehouses all across their serving areas.



They are adopting latest technologies in mould design analysis, prototype and tooling for product development so as to achieve reduced time for development of new product. Customers will be served according to the revenue generated by them; either from main plant or from the warehouses.



Element - People Attributes

Approach KFIL believes that its goals are achieved by continuously developing the capability of its people. They encourage people to take up challenges and come up with more innovative ideas.

Sound (75%)

Integrated (75%)

Deployment

They are developing the capability of its people through employee development programme, training on latest technologies, management & manufacturing concepts and providing individual growth opportunities. The ideas brought by them, if found appropriate is implemented throughout.



The organization is providing employee development programme, training on latest technologies, management & manufacturing concepts and providing individual growth opportunities. They are also been awarded for any such activities which is outstanding or contributes anyhow in the growth of the firm.



Element - Partnership and Resources Attributes

Approach KFIL is committed to serve customer by partnering in development process from the initial phases of design. They value their raw materials provider and other organizations contributing their production keeping organization’s present and future needs in view.

Sound (75%)

Integrated (75%)

Deployment

They believe in partnering in development process from the initial phases of design by meeting the expectations of delivery, quality and cost to add value in the customer value stream. Quality is maintained at every cost .



They do not compromise with the expectations of delivery, quality and cost to add value in the customer value stream. Everything is at par to quality. Quality of product is paid a lot of emphasis. Quality check is done for every item and none of them is passed without check; neither for buying nor for selling.



Element – Process, Products and Services AttributesApproach KFIL is having Pig Iron and Casting manufacturing

facilities at Bevinahalli, Koppal District, Karnataka and the foundry is the first of its kind having integrated set up to serve the customer with quality castings. KFIL has captive power generation facility. They are the major suppliers of Volvo and Daimler.

Sound (100%)

Integrated (75%)

Deployment

KFIL set up the manufacturing facility at Bevinahalli village considering the proximity to major raw material i.e., Iron Ore. Location is also well connected by road, rail and port. They are also planning to open warehouses all over the areas of their business so that the customer’s needs are catered more conveniently.



2012: Commissioning of Sinter Plant2010: Commissioning of Stove-2 and TG-3.2009: Re-Certified for TS:16949 : 2009. Certified for OHSAS - 18001. At Koppal Plant2005: Certified for TS:16949 : 20022002: Certified for ISO -140012001: Certified for QS -90001997: Commissioning of TG-21995: Commissioning of MBF-2 , Hospet Foundry and certified for ISO -90021994: Commissioning of MBF-1 and TG-1


RADAR Logic For Assessment

Analysis of ResultsElement – Customer Result Attributes

Relevance and Usability

Volvo, Daimler, Mahindra & Mahindra, Kirloskar Oil Engines Ltd, Escorts, TAFE, SIMPSON, EICHER, CARRARO, Toyota Kirloskar Auto Parts, KNORR -BREMSE etc., are the key customers of KFIL.

Relevance (75%)

Integrity (75%)

Segmentation (75%)

Performance Outcomes

The sale volumes of both pig iron and castings have grown at CAGR of 12.9% and 16.5%. KFIL’s revenues also increased from 699.1 Crore to 806.9 crore. Reduction in the cost of goods sold as percentage of sales reflected in PAT increment. Income from operations has also increased. They are the only suppliers of Volvo and also a major supplier to Daimler.

Trends. Trends are positive. (75%)

Targets. Targets are set, appropriate and achieved. (75%)

Comparisons. Established, favourable and appropriate. (50%)

Causes. Enabling effect is visible and there is clear evidence that the performance will be sustained. (50%)


Analysis of ResultsElement – People Result Attributes


Vision: “To be a product leader in pig iron & casting business”. Building on the Vision, Mission & Values, KFIL aims to achieve excellence in operation and offer the “Best in Class” Products and Service to their customers.Production is done according to the requirements.

Relevance (100%)

Integrity (75%)

Segmentation (75%)


The performance of the employees is considered in their evaluation. Their past working experiences and their ability to innovate is considered.






Analysis of ResultsElement – Society Result Attributes


KFIL being responsible corporate citizen, is committed to contribute to the society. KFIL has taken Health, Hygiene & Education as focus area for improvements in the neighbouring villages. KFIL have established KFIL Rural Development Trust to discharge its social responsibility commitment.

Relevance. (75%)

Integrity. (75%)

Segmentation (75%)


KFIL has setup a Health Centre in the neighbouring village & organizes various Health awareness programmes. Under the Education program KFIL is supporting Primary & Secondary Education to educate the children in the neighbouring villages. To stop the environment from being polluted, it has build a mesh around its slag dumping area.






Analysis of ResultsElement – Key Result Attributes


The Foundry market in India to grow at a CAGR of 19.67 percent over the period 2014-2018. it has been accredited with A++ rating from ICRA.

Relevance (75%)

Integrity (50%)

Segmentation (75%)


It has a depreciation of 291.99 million rupees (2011). It has net current assets worth 14.01 million rupees (2011). The return on gross capital employed is 15.66% (2011). Focused on R&D.

Trends (75%)

Targets (50%)

Comparisons (50%)

Causes (50%)

Kirloskar Ferrous Industries Limited

Engineering

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