INTERNAL GUIDE EXTERNAL GUIDEPROF D.K.SRIRAM KRISHNA MURTHY

SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES

CA-17 KENGERI SATELLITE TOWN BANGALORE

INDUSTRY PROFILE

The commencement of industry & its growth has

began with iron & steel in India in late 50’s & 60’s by

setting up new integrated steel plant at Bhilai,

Durgapur, Bakaro. Which involved high investment

&conventional route of producing iron through blast

furnace

A commission has setup for sponge iron producers in

India called SIIL ( sponge iron India ltd ) in the year

1980

COMPANY PROFILEM/S RAYEN STEELS PVT.LTD has established on 25th

feb 2006 & started its commercial production on 20th may 2006

RSPL started with an initial investment of 14 crores

RSPL is located near Haraginadoni village about 16km far from Bellary & 5km far from Kuduthini

Located at land measuring about 38 acres of land

RSPL involves in producing sponge iron as a raw material for steel manufacturing industry

The plant was producing 100 TPD (tons per day) of sponge iron which has been increased to 250 TPD in 2008

Annual turn more than 30 crore

OWNERSHIP PATTERN

Rayen organization setup under private limited co

The firm consist of 4 Board of Directors 1) Mr.Prakash.S2)Mr.Manohar.A3)Mr.Ramu.G4)Mr.Obul reddy

out of the total investment (14.73cr)30% is from share capital(4.42cr)70% is raised in from financial

institutions(10.31cr)

Vision and Mission statementVISION

To set up an integrated steel plant of international

standards & offer best steel to the global market &

stand ahead among the steel manufacturers

MISSION

To cultivate high standards of Business ethics & Total

Quality Management(TQM) for setting corporate identity

& brand equity

PRODUCT PROFILE

Sponge iron is a metallic product produced by Direct

Reduction(DR)of iron ore or pellets in the solid state

or coal based or gas based

• The final product after such Direct Reduction

contains a large percentage of metallic iron with level

of metallization up to 90% & the balance being some

amount of reduced iron oxide

• The sponge iron has a highly porous structure when

viewed under Microscope & hence this product is

called sponge iron

RAW MATERIALSRaw materials required1. Lump iron ore2.Coal3.Limestone

PRODUCTION PROCESS

Production process

Kiln main drive Feed

Belt

Stock house (raw materials)

Processes Cooling Sponge iron

CD beltLab testingProduct house

ORGANISATION CHART

FUNCTIONAL DEPARTMENTS

HUMAN RESOURCE DEPARTMENTFINANCE DEPARTMENTMARKETING DEPARTMENTPRODUCTION DEPARTMENT

HUMAN RESOURCE DEPARTMENT

HR POLICIESTo continuously foster a feeling of community among their work

force

To work as a collective force towards a goal that benefits

everybody

Apart from on the job training numerous programs on general

management & behavioural topics are conducted each year

General Manager

Welfare & safety

Administration Securities Environment Transport Legal & compensation

HR (assistant)

Time officer

FINANCE DEPARTMENTSTRUCTURE OF FINANCE

DEPARTMENTOBJECTIVES OF

FINANCE DEPARTMENT

To ensure adequate return

on capital employed

To develop long term

corporate plans to provide

adequate growth of the

company

To reduce the cost of

production of sponge iron

by means of systematic

cost control measures

MARKETING DEPARTMENT

MARKETING MIX

PRODUCTPRODUCT : sponge ironQUALITY :highBRANDING: Rayen steels

pvt.ltdPACKING : not requiredCOLOUR : ashAFTER SALES

SERVICE:good

PROMOTIONADVERTISING &

PUBLICITY: low profile

PUBLIC RELATION: good relationship

Practices /procedure

Only those employees who know local language are sent to the customer

Marketer makes the customer to know the quality checks done at Rayen

Customers financial strength & weakness & requirements are known to the branch

Officers & agents

PRICE PLACE

CASH TRANSACTION :

as the price is fixed by SIIL

association it cant be

changed .it is also useful to

maintain good & healthy

relation with competitors

CASH DISCOUNT : it is left

to the company weather to

discount or not if it is paid

from cash

CREDIT PERIOD: 30-45

days

CHANNELS OFDISTRUBTION: direct selling & commission agents

MODE OF TRANSPORT :

by truck only

PRODUCTION DEPARTMENTSTRUCTURE OF PRODUCTION DEPARTMENT

ENVIRONMENTAL MEASURES

ESP :ELECTRO STATIC PRISPITATEABC: AFTER BURNING CHAMBERDCC:DUST COLLECTING CHAMBER

SWOT ANALYSISSTRENGTHS WEAKNESS RAYEN STEELS is located near

the major power generating

stations both hydra and thermal

like Raichur, Munirabad,

kuduthini

Commissioning the sponge iron

plant has reduced the

dependability on scrap.

Good corporate image of

RAYEN enhances the level of

confidence in workers.

Market demand for sponge iron

is more.

RAYEN is largely dependent on

bank loans rather than other

sources.

Concentrated on south India

market and neglected other

parts.

It has to depend on other

sources for the procurement of

raw materials.

RAYEN is facing a lot of

problems like transportation,

diesel& fuel, break downs, Etc

………….

OPPORTUNITIES THREATS

Efforts are on for reducing the power cost, which is key element in the process of sponge manufacture.

Since RAYEN has wide network of traders, it can supply its product directly to customers without any difficulty.

This year RAYEN has given very good performance, so it will imbibe a new enthusiasm in its employee to do better.

Steel industries such as Jindal, Kalyani and Mukunda have come up in Bellary region from which demand for sponge is more.

Increased competition in the market with other domestic producers.

Obsolescence of existing technology.

High cost of input materials.

Tight money market situation.

Inadequate flow of funds.

They cannot change the selling price of the product as it is fixed by Sponge Iron Association

FINDINGS

Good production facility

Financially sound

Good industrial relationship

Qualified & skilled workers

Companies friendly environment

Brand presence

Good incentive system

Lack of fresh blood

SUGGESTIONS / RECOMMENDATIONSImprove the technology for the sake of growth in

production.Training program is necessary for all the workers to

improve quality of production.RAYEN should try to enter all the regions of India as

its new market place.It should reduce the costs, develop customer

sensitiveness and give incentives to the workers and employees.

They should provide the safety measures for the workers.

They have to implement the Management Information System (MIS) for the benefit of organization.

Improve product quality than the competitors.

THANK U