PROJECT_OF_HOTHUR_ISPAT[1]23

ORGANISATIONAL STUDY

CHAPTER I

INTRODUCTION

INTRODUCTION

Iron is the most used of all the metals, comprising 95% of all the metal tonnage

produced worldwide. Its combination of low cost and high strength make it

indispensable, especially in applications like automobiles, the hulls of large ships, and

structural components for buildings. Steel is the best known alloy of iron and sponge

iron is the most important raw material used in the manufacture of steel.

OBJECTIVES

• To study the organizational structure and work flow in Hothur Ispat Pvt Ltd.

• To gain practical experience that can be related to the academics and

develop necessary interpersonal and managerial skills.

• To identify the problem areas and offer suggestions where ever necessary.

SCOPE OF THE STUDY

The study is related to the various functional areas of the company selected. It aims

at deeply studying the functional performance of different departments. The scope of

the study is restricted to only Hothur Ispat pvt ltd. The data has been collected for 6

years from 2004-05, 2005-06, 2006-07,2007-08,2008-09,2009-2010 from the records

of the company and other needed information was gathered from the officials on

discussion.

LIMITATIONS OF THE STUDY

• As the duration of the project was short, limited study could be carried out as a

result the findings of the study will be influenced by it.

• The study has confined to only Hothur co ltd., for 6 years data only so it may not

reveal perfect position of the company.

MSRCASC-MBA DEPT


PERIOD OF STUDY

The period of study of the project is 5 weeks from1st July 2010 to 5 th August 2010, in

HOTHUR ISPAT PRIVATE LIMITED.

CHAPTER II

MSRCASC-MBA DEPT


PROFILE OF THE INDUSTRY

INTRODUCTION

Sponge Iron is a recognized alternative to steel scrap as a raw material for the

manufacture of various steel products. The twin issues of

a. Rapid depletion of Coking Coal reserves and

b. Scarcity of indigenous scrap, made the Government of India support production of

sponge iron in the country.

The story of sponge iron also known as Direct Reduced Iron (DRI) industry is very

interesting as far as India goes. The three-decade old this industry came into existence

all on a sudden when mini steel plants were looking out raw materials randomly.

Since, India has adequate coal deposits; its utilization for steel plants was considered

of prime importance.

Production of coal based sponge iron in the beginning was taken as a viable option.

Sponge iron industry grew at very slow speed till the mid of 1980 due to

government’s restrictive licensing. The 1985 proved as a historical year for the

industry in general and the steel industry in particular

To boost the growth of the industry a major thrust was given by the Government of

India by providing the manufacturers the following benefits: De-licensing, firm

linkages, allocation of natural gas and financial support. This lead to an immense

growth of the sponge iron industry in India, from a meager capacity of 30,000 tons

per annum in the year 1980-81 it grew to 32 million tons in 2009-2010.

India is the largest producer in the world since 2002 (2009 stats) 20.8 million tons in

2008-09 and in 32 million tons in 2009-2010 and is likely to achieve 124 tons by

2012. It has been the largest producerfrom past 8 years growing at a rate of 21 %.

There are four major producers in the world are:

India

Venezuela

Mexico

Iran.

ORIGIN OF THE INDUSTRY

MSRCASC-MBA DEPT


First signs of use of iron come from the Sumerians and the Egyptians, where around

4000 BC, a few items such as the tips of spears, daggers and ornaments, were being

fashioned from iron recovered from meteorites. Iron was used in India as early as 250

BC, the famous iron pillar in the qutb complex in Delhi is made of very pure iron

(98%) and has not rusted or eroded till this day.

INDUSTRY GROWTH

Since 1980, the sponge iron industry took a “U” turn and the players of the industry

were very reluctant to contribute significantly for steelmaking looking at the bright

prospects of the steel industry in India and neighboring countries. Sponge Iron India

Ltd. was outcome of the players’ enthusiasm who accepted the challenge for DRI

production.

This was the first sponge iron plant in the country which was set up at Paloncha in

Andhra Pradesh with a capacity of 0.039 MTPA in 1980. Between 1980 and 1988,

there were only three plants set up namely Orissa Sponge Iron Ltd. - capacity of 0.1

MTPA, Ipitata Sponge Iron - capacity of 0.09 MTPA and Sunflag Iron Steel Ltd.

With plants were set up to produce sponge iron for captive consumption. In 1989, the

first merchant sponge iron plant of Bihar Sponge Iron Ltd. with a capacity of 0.15

MTPA was set up. In the late eighties, domestic producers were enthused by the

discovery of large reserves of natural gas, started setting up gas based sponge iron

plants.

SPONGE IRON - GENERAL CHARACTERISTICS

Sponge iron is a metallic product produced through direct reduction of iron and iron

ore pellets in the solid state. It is a substitute for scrap and is mainly used in making

steel through the secondary route. The process of sponge iron making aims to remove

the oxygen from iron ore.

The quality of sponge iron is primarily ascertained by the percentage of metallization

(Removal of oxygen), which is the ratio of metallic iron to the total iron present in the

MSRCASC-MBA DEPT


product. Sponge iron manufacture is highly sensitive to raw material characteristics.

Therefore, it is essential to examine the chemical and physical characteristics of raw

materials, both individually and in combination. The basic raw materials for the

production of sponge iron are iron ore, non-coking coal and dolomite.

GLOBAL SCENARIO

The total global production of sponge iron was estimated to be about 51.27 million

tons in the year 2008 India, Venezuela, Iran and Mexico are the four largest producers

of sponge iron with about 32%, 13.8%, 12.73% and 11.6% share of world's total

production. Today India alone produces 32 million tons of sponge iron. India is the

largest producer in the world with 32% per cent of world production. It has been the

largest producer for the last 8 years and production is one million tonne higher than

any other country. There four major producers in the world (India, Venezuela, Mexico

and Iran) accounting for 70 per cent of the global production. It is growing like no

other country. The domestic average growth rate has been 21 per cent in the last three

years while the global growth rate stands at 10 per cent.

country May 2008 (in million tons)Canada 0.84Mexico 5.99

Trinidad and Tobago 1.77Argentina 1.49

Brazil 0.22Peru .08

Venezuela 7.10Libya 1.80

South Africa 1.29Iran 6.53

Qatar 1.65Saudi Arabia 3.77

India 16.50Total 51.27

INDIAN SCENARIO

With the domestic steel industry picking up during the past year and prices moving up

in leaps and bounds, India has emerged as the world’s largest producer of sponge iron

MSRCASC-MBA DEPT


(or direct reduced iron)accounting for around 32 per cent of the global output. India

is the global leader with a production of 20 million tons (year 2009), followed by

Venezuela with 8 million tons. Sponge iron is used to make steel by all Indian steel

producers and is a substitute for steel melting scrap.

Healthy demand growth in steel sector is also pushing sponge iron demand. A part

from declining availability of steel melting scrap, sponge iron demand has also gone

up considerably and is likely to continue. About 45% of the domestic output is

through EAF (electronic arc furnace) route. However, going forward this is slated to

increase, with steel production is likely to grow at higher the demand for sponge iron

is likely to grow at more than 10 percent in the year 2011-2011.

FACTORS INFLUENCING DEMAND & SUPPLY OF STEEL

LONG AND STEEL FLAT

1) The demand for steel is dependent on the overall health of the economy and the

infrastructure developmental activities being undertaken.

2) The steel prices in the Indian market primarily depend on the domestic demand and

supply conditions, and international prices.

3) Government and different producer and consumer associations regularly monitor

steel prices. The duty imposed on import of steel and its fractions also have an impact

on steel prices.

4) The price trend in steel in Indian markets has been a function of world's economic

activity.

5) Prices of input materials for iron and steel such as power tariff, freight rates and

coal prices, also contribute to the rise in the input costs for steel making.

6) Domestic industry is showing improved performance on back of higher volume,

improved realization, increased operating efficiency and financial restructuring.

PRESENT STATUS OF THE INDUSTRY

• India is world’s largest producer of sponge iron and fifth largest producer of steel.

MSRCASC-MBA DEPT


• Post liberation corrective actions initiated.

• De-reservation of steel industry.

• Reduction of import tariff.

• Removal of price regime.

• Abolition of steel development fund and freely equalization.

CHAPTER III

COMPANY PROFILE

MSRCASC-MBA DEPT


HOTHUR ISPAT PVT LTD,

Profile: - The Hothur Ispat Private Limited is the Company Incorporated under the

Companies act ‘1956 on 22nd DEC 2004. The Company is being promoted by Mrs.

& Mr. Hothur Mohammed Iqbal of HOTHUR FAMILY from Bellary- Sandur sector

from the state of Karnataka, India.

ISO 9001:2000 CERTIFIED

Figure 3.1

The HIPL is being set up for Manufacture of Sponge Iron of 3 x 100 TPD (Tone per

day) at Veniveerapur Village, Bellary with Production Capacity of 60000 tons per

annum with an outlay of Rs.26.00 corers. In the year of incorporation the Company

has started the construction activities of the sponge iron plant and successfully

complete the construction and started the commercial operation in the month of

November ‘2005, March ‘2006 and April 2010 respectively for the kiln -1, kiln -2 and

kiln-3 of the plant and by now the product is well established in the market HOTHUR

SPONGE with an added advantage of using iron ore from captive mines to maintain

premium quality on the product. The sponge iron production using coal involves

reducing iron ore with coal or lignite. The production is carried out in a Rotary kiln at

a pre-determined temperature and controlled atmosphere after magnetically separated

the final product is fed to the electrical and furnace plant to convert the same into

liquid steel for producing finished steel product of various applications.

COMPANY CHART

MSRCASC-MBA DEPT


Figure 3.2

NATURE OF THE BUSINESS CARRIED

HOTHUR ISPAT PVT limited is producing high quality sponge iron. This product

was used initially in Induction furnace as a reducing agent for reducing Carbon in the

scrap. Later on Sponge Iron is used as a raw material along with scrap. It supplies

material of Sponge Iron to major steel industries such as, Shivang Ispat Pvt Ltd.,

Mumbai, Talent Engineering Coimbatore Pvt Ltd etc.,

Meaning of Sponge Iron:

Removal of oxygen (reduction) from the iron oxide particle in solid state

leaves several pores behind making the particle porous which looks spongy

when seen under a microscope and hence the name sponge iron for the product

derived from DR process. Sponge Iron is mainly used as a raw material for specialty

steel as well as substitute for scrap. Made from iron ore, sponge iron in itself is not

used. It is further processed to make wrought iron. The rise in price of scrap and other

factors have led to the increase in the use of sponge iron for making high quality steel.

Environment policy

Mining and mineral processing produce essential commodities that enhance living

standards. At the same time, Hothur recognizes the importance of preserving and

protecting the environment. We are committed to conduct our operations in a manner

that safeguards natural resources as much as possible. Like everything else we do, we

approach the problem in a professional, organized way, realizing substantial benefits:

MSRCASC-MBA DEPT


• Post-mining, affected areas are filled and leveled with top soil indigenous &

species are planted

• Between 1995 and 2003, we have planted more than a million trees of various

species, transforming barren lands in to lush green ones, with rich flora and fauna

• We have strived to preserve the natural landscape in the 50+ hectares of our

mining area

• Check dams and gully plugs have been built on hill slopes and plains to prevent

soil erosion and on termination of water bodies

• Benches are drawn to prevent landslides

Another priority is workplace safety:

To eliminate injuries, we have implemented stringent safety procedures ensuring

that all personnel work in safest possible environment.

Protective gear used by our personnel of the highest quality.

We have made the necessary investments in mechanization and automation to

minimize human involvement in risky operations

Company Mission

“To become one of the leading high-grade iron ore suppliers in the country by

satisfying direct and indirect needs of domestic and global customers to their

satisfaction; through the application of state-of-the-art technology and the services of

a committed, knowledgeable team.”

Company vision

“To establish the Hothur brand as the strongest, most consistent supplier of high-

grade Sponge iron in the country, by intelligent use of resources, exacting quality

standards, and unfailing reliability and to achieve this with proper consideration to the

environment.”

Company Core Values is as below :

MSRCASC-MBA DEPT


Our core values have always been a strong customer focus, dedication to quality, and

absolute reliability in terms of production and delivery. All our business operations

are run with the guiding spirit of honesty, fair play, and cast-iron integrity.

OBJECTIVES OF THE COMPANY

• Enhance customer satisfaction.

• Effective planning provision and utilization of resource.

• Continual improvement of process

• Providing training and motivation employees at all levels.

• Improving reliability of suppliers.

• Ensure safe working environment.

FUTURE GROWTH AND PROSPECTUES

PROJECTS:

1) 10MW Captive Power

Plant.

The sponge iron is used as

substitute for the scrap in Steel

Melting Shops (SMS). It can

be sold as intermediary product for the furnace. These kilns emit

Figure 3.3

lot of high temperature gases in to the atmosphere which are not only going as waste

but also hazardous to workers, animals & plants etc. The waste heat emits to the

atmosphere can be recovered from the kilns, which can be a source for generating

power with the help of WHRB. AFBC Steam Generator this may also called as co-

gen 10 MW that is our expansion plan of Induction furnace, Rolling mills will be

rolled as long products specially catering to construction industry & infrastructure

industry.

2) Railway Siding

MSRCASC-MBA DEPT

http://www.hothurindia.com/10wCPPlant.html

http://www.hothurindia.com/10wCPPlant.html


Siding will be lying on Kudithini station at 1.2km away from 18km from Bellary

station (Karnataka). Planning & Deployment of adequate Engineers at the site to co-

ordinate, Inspect & Liaison at the site during execution of the work. Engineers will

also ensure quality Figure 3.4

control as per Railway standards and norms. Maintaining close liaison with railways,

RV Associates Railway Consultancy to ensure proper co-ordination in the progress of

the work.

3) Sewerage Pipe Line

Perennial Source of water is

available from Treated Sewage

Water at Anantapur Road and Cowl

Bazaar Area. The total sewage

water flows from the two treatment

plant 2.55 MLD to pond near plant.

The sewage Water can be further

utilized for upcoming projects Figure 3.5

4) Washing Plant.

HIPL are Installing Commander 1400 Mobile Washing Power Screen having features

like Portability and Modular screening equipment used for washing application of

Iron Ore, Coal Etc, which is ecologically and environmental Friendly. The washing

unit has been engineered for Quick installation and ease of relocation, which is very

ideal for large-scale industry like ours.

PRODUCT PROFILE

• SPONGE IRON LUMPS

• SPONGE IRON FINES

BY PRODUCT

• COAL DUST

MSRCASC-MBA DEPT

http://www.hothurindia.com/washing.html

http://www.hothurindia.com/pipeline.html


PRODUCT OR SERVICE PROFILE

Company manufactures sponge iron Sponge iron is a metallic product produced by

direct reduction of iron ore in the solid state. It is also known as direct reduced iron.

The final product after such direct reduction contains a large percentage of metallic

iron of up to 90% and the balance of some amount of reduced iron oxide and the

gangue in the ore. The sponge iron has a highly porous structure when viewed under

microscope and hence this product is called sponge iron.

Raw materials: The main raw materials required are iron ore,

suitable coal, and dolomite.

Iron ore: The iron ore used is hematite with a Fe content of 62-66% having low

decrepitating characteristics. In the initial days the iron ore size was kept at 5-20 mm

and was washed in a scrubber, but presently it has become a standard norm to use 5-

18 mm ore as feed for a large kiln without scrubbing and/or washing. This has

resulted in reducing the cost of iron ore fed to the kiln.

Coal: Non-coking coal is being used having certain important parameters considered

necessary for the direct reduction of iron ore viz. reactivity, ash softening

temperature, caking and swelling indices and sulphur content, etc. ‘B’ grade coals

were being consumed

SPONGE IRON

Sponge iron is a metallic product is produced by direct reduction of iron ore or pellets

in the solid state (i.e., without the material going into the liquid phase as is the case in

the blast furnace, which is the conventional route for converting iron ore into iron). It

is also known as Direct Reduced Iron (DIR). The final product after such direct

reduction contains a large percentage of metallic iron with levels of metallization unto

90% and the balance being some amount of reduced iron oxide and the gangue in the

ore. The Sponge Iron has a highly porous structure when viewed under the

microscope and hence this product is called “Sponge Iron”.

COAL-BASED AND GAS-BASED PROCESSE FOR

MANUFACTURE OF SPONG IRON

MSRCASC-MBA DEPT


The reduction of iron ore either lump ore or pellets can be achieved by using

either carbon bearing material, such as non-coking coal or a suitable reducing

gas in the form of reformed natural gas.

The processes employing coal are known as solid-reactant or coal-based

processes, while those employing educing gasses are known as gas-based

processes.

Sponge iron produced by gas-based process is normally hot briquette and

hence it is also known as Hot Briquette Iron (HBI).

The choice of coal-based process depends largely on the availability of the

reducing agent and iron ore /pellets as the case may be.

Gas based Sponge Iron Plants are not only capital intensive but are also of

large capacity in the range of 1.0 to 2.0 million TPA, where as coal based

Sponge Iron Plants are less capital intensive and can be smaller in size to suit

the investment requirement whose availability has now become scarce.

The industry has successfully adopted measures to utilize ‘C’ and ‘D’ grade

coals through better process control, installing raw material heating systems,

shale picking belts and coal washing plants with these measures the coal cost

has been reduced by nearly 20-30% when compared with the usage of ‘B’

grade coal.

Dolomite: Dolomite is mainly used as a desulphurising agent to prevent the pickup of

sulphur by the sponge iron from the sulphur released by the burning of coal inside the

furnace. The initial specifications for dolomite were 1-4 mm, later it was found that 4-

8 mm dolomite was far more suitable by which the consumption can be reduced by

50%. This was mainly due to the fact that lot of dolomite fines were being lost to

waste gases and with 4-8 mm fraction this loss was minimized.

MSRCASC-MBA DEPT


Figure 3.1 ROTARY KILN

Figure 3.2 ROTARY KILN

Some of the features of the sponge iron produced at HIPL are:

High iron content and high degree of metallization

Uniform and consistent quality

Lower sulphur and phosphorus content

Negligible tramp element

Minimum dust generation during material handling

Good flow ability in bins, pipes and conveyors for continuous and trouble free

charging

Superior technical support to induction furnace operators

AREA OF OPERATION

MSRCASC-MBA DEPT


The area of operation is regional and national. It sells sponge iron to many states in

India such as,

1. Andhra Pradesh

2. Maharashtra

3. Gujarat

4. Tamilnadu

5. Kerala

6. Bellary region of Karnataka

It has 4 major iron ore mines in Bellary district

Mallangola iron ore mines,sandur

Kariganur iron ore mines ,hospet

Venkatagiri iron ore mines,hospet

Veniveerapur iron ore mines,bellary

IT purchases raw material from

Raw materials Places it purchases from

Iron ore Sandur , Bellary District

Coal South Africa, Indonesia, China, Australia

Limestone Andhra Pradesh

OWNERSHIP PATTERN

MANAGING DIRECTOR : MOHAMMED IQBQL

HOTHUR

CORPORATE OFFICE : HOTHUR GRAND

# 771, 100 FEET ROAD

INDIRANAGAR,

BANGALORE

REGD. OFFICE & FACTORY : HOTHUR ESTATE, NH 63

VENIVEERAPURA

MSRCASC-MBA DEPT


HOSPET ROAD

BELLARY

INTIAL INVESTEMNT : RS. 26.00 CRORES

DATE OF INCEPTION : NOV. 24TH, 2005

MFG. PRODUCT : SPONGE IRON

COMPETITORS INFORMATION

Competitors of Hothur Ispat are

• M/s Embitee Iron and Steel (P) Ltd.,

• M/s Hindustan Calcined Metals (P) Ltd.,

The above companies are giving tough competition to the HIPL in terms of

cost production. They can produce the sponge iron by cost Rs.9000-Rs.10000

per as these companies have their own mines ton where as the HIPL is able to

produce same at the cost of Rs.12000-Rs.13500 per ton.

• M/s Shree Venkateshwara Sponge and Power (p) Ltd.,

This company uses new Technology i.e., Pre heating process. This process

uses the waste gas coming out from the production process of sponge iron.

The pre heating process generates heat at about 2500 C.

• M/s Benaka Sponge Iron private Ltd.

• M/s Rangineni Steels private Ltd.

• M/s Agarwal Sponge Energy private Ltd.

• M/s Sigma Solid Stripes private Ltd.

• M/s Sajjala Iron and Steel private Ltd.

INFRASTRUCTURAL FACILITIES

A renowned economist and social scientist Rosenstein Rodan has defined the role of

infrastructure in an industry as an umbrella for many activities referred to as "Social

Overhead Capital",

1. Raw material storage and building

2. Rotary kilns

3. Rotary cooler

MSRCASC-MBA DEPT


4. Effluent treatment plant

5. Finished goods storage and dispatch yard

6. Water supply system

7. Administration building

8. Testing lab

9. Medical plant unit

10. Guest house

11. Canteen

12. Waste disposal dump yard

13. Works office

14. Generator or power

The Plant Capacity:

Sponge Iron:

Three rotary kilns, coal based of 36,500 T.P.A capacities each, fully automated raw

material.

Handling Systems:

Fully computerized process control systems.

ACHIEVEMENT AND AWARDS

Following is a list of awards from renowned organization:

National Industrial Excellence Award – World Economic Progress Society,

New Delhi

Bharatiya Udyog Ratan Award – Indian Economic Development and Research

Association, New Delhi

Pride of India Award (for outstanding individual achievements and

distinguished service to the nation) – Global Economic Council, New Delhi

MSRCASC-MBA DEPT


International Gold Star Millennium Award – Global Economic Council,

Katmandu, Nepal

A member of the managing committee of the Federation of Indian Mineral

Industries

WORK FLOW MODEL

Sponge Iron Production using coal involve

Reducing iron ore:

with coal and lignite

The reduction is carried out in a Rotary kiln at a pre –determined temperature

and control atmosphere.

The input raw material i.e., irons ore, coal and limestone in the required

calibrated sizes is fed into the rotary kiln which is inclined and rotates at a

required range of speed.

Due to the inclination and the rotary motion of the Kiln, the raw materials

move from the feed end to the discharge end.

In the process it gets pre-heated and reduced to sponge iron.

The material discharged from the kiln is taken into a rotary cooler where the

material is cooled.

The cooled product has temperature of 80°C is discharged from the cooler and

taken to the product separation and handling system.

The Product, which consists of sponge iron and non –magnetic such as char

etc., is screened to different size fractions and then magnetically separated by

means of magnetic separations.

Sponge Iron is taken to storage bin for dispatch.

The char which is not magnetic and contains a certain amount of carbons, is

taken into a separate bin and can be recycled if found suitable or alternatively

sold as fuel for applications such as in brick making and so on.

MSRCASC-MBA DEPT


FIGURE 3.3 PRODUCTION CHART

PRODUCTION PROCESS DETAILS

The Iron ore, Coal and Lime Stone will fed into the rotary kiln form Raw and other

raw material Bunkers/Tanks with the help of Conveyor System. The haematite the

principal naturally available mineral of iron is converted into Sponge Iron in the said

Rotary Kiln with the help of non-coking coal. Haematite consists of iron oxide, i.e

chemical combination of iron and Oxygen and also impurities like silica, Alumina,

Oxides of Calcium and Magnesium. Oxygen present in chemical combination with

the iron in iron ore is to be removal to convert iron oxides into pure iron. It (removal

gas of oxygen) is achieved with the help of Carbon Monoxide produced in the kiln.

Carbon present in the coal is converting into oxide in iron into carbon monoxide gas

MSRCASC-MBA DEPT


with the help of oxygen present in the atmospheric air, pumped into rotary kiln.

Controlled atmosphere condition in the rotary kiln system will result in the generation

of carbon monoxide. The lime stone or dolomite is used to disulphide the coal so that

iron in sponge iron will not pick up this sulphur to become iron sulphide.

This entire process of converting iron oxide in iron ore into iron is carried out in solid

state from feeding mouth of kiln to finishing end. The material will travel 8 hours

duration of time, and care has to be taken to ensure that there is no fusion, even on the

surface of the particles in the kiln. If there is fusion, the particles will stick to the kiln

walls and form an obstruction to the material flow through the kiln thereafter. Fusion

will be normally caused in the kiln because of presence of free oxygen in the kiln in

some zones due to process imbalance. Such free oxygen will react with the iron on the

surface of sponge iron particles, resulting in instantaneous fusion as conversion of

iron to iron oxide is highly exothermic. Surface fusion of sponge iron particles in the

kiln is avoided by feeing coal in excess of actually required for the process so that the

free oxygen will only increase the temperature in the kiln in combination with coal

but causes no fusion. Removal of oxygen (reduction) form the iron oxide particle in

solid state leaves several pores behind, making the particle porus, which looks spongy

when seen under a microscope and hence the name sponge iron for the product

derived from DR process.

FUTURE GROWTH AND PROSPECTUS

sponge iron and steel making industry go hand in hand and hence it is quite difficult

to assume the future of sponge iron industry without steel and vice versa.

The company’s future growth and prospectus is

1. To expand its business

2. To export its product around the globe

MSRCASC-MBA DEPT


FIGURE 3.4 LAYOUT OF HOTHUR ISPAT PVT. LTD

STRUCTURE

The design of organizational structure is a critical task of the top management of an

organization. It is selection of whole organization edifice. Organizational structure

refers to the relatively more durable organizational arrangements and relationship.

It prescribes the formal relationship among various position and organizational

members to communicate with other members to communicate with other member,

what roles the is to perform and what roles and procedures exist to guide the

various activities performed by members are all part of the organizational structure.

MSRCASC-MBA DEPT


If Practices centralized activity with participative leadership as each and every

employee of the organizational are allowed giving their point of view.

Line and staff relationship:

HR & Administration department perform staff Functions

A line manager is sole responsible for their targets.

The company adopts top down approach as well as bottom up approach. As in the

case of major decisions like Policy and procedures etc., will be taken by top

management.

The General Manager will look after the marketing of raw materials and

finished goods and also he look after the sales department and dispatch, orders

of finished goods .

The company has own mining field, they don’t have any suppliers of raw

material, they don’t have any scarcity of raw materials, good quality of raw

materials are available. Raw material like iron ore, coal, finished goods like

sponge iron.

CHAPTER- IV

MSRCASC-MBA DEPT


CHAPTER V

MSRCASC-MBA DEPT


SECURITY DEPARTMENT OF HIPL

Security department is the index of the company and an independent department of

the organization. The primary function of this department is to safeguard the

personnel, materials, property & also collect the information regarding the employees

and surroundings. Security department takes care of fire incidence, look transport for

MSRCASC-MBA DEPT

VARIOUS DEPARTMENTS

OF HIPL

SECURITY

DEPARTMENT PRODUC

TION DEPARTMENT

MARKETING

DEPARTMENT

FINANCE

DEPARTMENT

HUMAN RESOURC

E DEPARTM

ENT

PURCHASE

DEPARTMENT

DISPATCH

DEPARTMENT


personnel etc., the security department is appointed by president. This department

consists of 26 guards totally. These guards are provided by the agency.

Qualities for security staff

The security department expects certain qualities from the guards while

appointing for the post. They are as follows.

He should be physically fit.

He should have security background.

He should be intelligent and initiative.

He should be enough care full while allows visitors, employees and incoming

materials and also allows materials going out after dispatched.

Duties of Guards of main gate

They should not allow any vehicle without receiving the gate pass.

They should leave the visitors and incoming materials from the gate with

permission from the in charge.

They should leave only those trucks taking out materials after dispatched

and not any other vehicles.

They should check the vehicle before departing.

The security department maintains certain records and reports, such as

Material gate entry register

Retainable and non-retainable register.

Vehicle in and vehicle out register.

Visitors pass register.

Materials dispatch register.

Visitors pass.

Vehicle entry passes.

Security law book.

Personnel movement registers.

Mr. Patil heads of the security department in HIPL.

SECURITY SETUP AT HOTHUR ISPAT

MSRCASC-MBA DEPT


a. Plant operation wing

b. Township wing

c. Intelligence wing

COMPONENTS OF SECURITY OPERATIONS

a. Physical Security Measures

b. Access Control Measures

c. Package and Goods Movement Control

PRODUCTION DEPARTMENT OF HIPL

It is concerned with the process of converting raw materials in to finished products

(sponge iron) the various steps involved in the manufacture of sponge iron are given

below.

MSRCASC-MBA DEPT


PROCESS SELECTION

M/s Hothur ispat (P) Ltd., will put into use the solid reduction process which is coal

based

Main components are:

Rotary kiln

Product cooler

Screens

Magnetic separators & cyclones

Gas cleaners

Conveyer belts

Bunkers

Inputs

• Raw material- iron ore finished product-sponge iron

• Fuel-coal byproduct-dolochar (Coal dust)

• Addition-lime Dolomite waste-gas & dust

PROCESS OUTLINE

Basic chemistry involves reduction of iron ore in solid state. It follows a simple

process in which the % 2 associated with iron as oxide in the ore is removed by

exposing it to very high temperature in presence of catalytic agents like lime and

dolomite. Mostly used technologies are :

• The performed natural gas process-by gaseous reduction of iron ore.

• Coal based rotary kiln process-solid reduction.

MATERIAL BALANCE

For the proposed 300 TPD sponge iron plant (annual production considering 300

production

Days per year are 90000 TPA) the following elaborates the material balance.

MSRCASC-MBA DEPT


INPUTS

Coal = @1.0 T/tone of DRI* = 300 TPD

Iron ore = @1.6 T/tone of DRI = 480 TPD

Lime & dolomite = @0.06 T/tone of DRI = 18 TPD

Air = 60 TPD

Total = 858 TPD

OUTPUTS

Sponge iron = 300 TPD

Dolochar = 111 TPD

Gas & Dust = 447 TPD

Total = 858 TPD

DRI = direct residual iron i.e. sponge iron.

Coal sponge iron

Iron ore Dolochar

Lime & dolomite Gas & Dust

Air

BLOCK DIAGRAM FOR MATERIAL BALANCE

MSRCASC-MBA DEPT


coal35%

iron ore56%

lime &dolomite2%

air7%

input

sponge iron35%

dolochar13%

gas&dust52%

Out Put

MARKETING DEPRATMENT OF HIPL

MSRCASC-MBA DEPT


The strings of the management of the company are in the hands of Board of

Directors who reports to the Vice President. The Vice President looks after the

affairs of the company

The various units of HIPL are:

• Raw Marketing Handling Plant [RMHP]

• Pelletization Plant [PP]

• Basic Oxygen Plant [BOF]

• Continuous Casting Plant [CCP]

• Hot Strip Mill [HSM]

After the production, the company sends to its plant regarding consumer

requirements, quality and quantity details, and transportation facility and delivery

date to dispatch department for dispatch the goods at correct time.

The material is loaded into truck or rail without any variation of quality. The senior

officer also checks this at the time of loading.

MARKET:

Marketing is so basic that it cannot be considered a separate function it is really the

whole business sees from the point of view of final results. Marketing is a view point

which looks at the entire business process has a high integrated effort to discover,

create arose and satisfy the customer needs.

Market: It is a place where a goods and services are exchanged; the term market

means to aggregate of all demands for as particular product or service. It also refers

to aggregate of all consumers – existing and potential for product. Hothur has a very

good market for almost all market centers. Direct customers will approach with the

bulk order for their utilization. Traders place the orders for resale and profit out of it.

PHYSICAL DISTRIBUTION:

MSRCASC-MBA DEPT


The process of getting goods to customers has traditionally been called physical

distribution. Creating a customer and creating a product do not complete the process

of marketing, delivering the product the customers is an equally important part of this

process and that is referred to as distribution in marketing parlance. Physical

distribution is a process of reaching the product to the consumers. It coordinates all

the activities in the physical flow of product between producer and consumer.

Physical distribution provides place and time utility to product. It is distribution that

makes the product available at the right place and at the right time, there by

distribution maximizes the company’s change to sell the product and strengthening its

competitive position. It is now becoming prominent cost area.

There are 2 major components

1. TRANSPORTATION

2. WAREHOUSING

1) TRANSPORTATION:

It is the first among the major function of physical distribution. It adds time utility &

place utility to the product.

There are 3 main type of transportation the manufacture must also known the

relative costs of mode.

Roadway Transport

Railway Transport

Waterway Transport

The main product of Hothur is SPONGE IRON. The size of each sponge will be

approximately 10 to 25 mm, so the Airway transport is not the best mode for

transportation because it is more costly, capacity will be limit and cannot carry bulk

orders. The transportation mode of Hothur is Roadway & Railway. For Export orders

it is send though Waterway by costal shipping.

Hothur Ispat has chosen roadway because of following reasons:

MSRCASC-MBA DEPT


Cost is low compared to others

More accurate

It eliminates the terminal cost

Roadways are very convenient to both manufacturers as

well as buyers

Hothur ispat uses truck as main vehicle for transportation

Hothur ispat basically prefer for road transport when the

distance is less.

WAREHOUSING:

Every company has to store finish goods until it get sold, because production and

consumption cycles may or may not match. As a matter of fact, Warehousing

Management has two distinct and equally importing parts.

The physical job crafting scanning the network of storage points and

The managerial task of controlling the inventory levels

ADVANTAGE OF MAINTAINING WAREHOUSE:

• To ensure timely delivery

• To see smooth running of production

• To meet the demand

• It helps in balancing demand and supply by stabilizing the prices

• The product, produced is dispatched to different place according to the orders

received and extra products are stored in the warehouse for future dispatch.

Hothur ispat is maintaining a small part as a stock in Bangalore; Chennai &

Hyderabad because there concentrating on small market also due to profit margin are

high.

MSRCASC-MBA DEPT


CHANNELS OF DISTRIBUTION

Hothur has adopted

0-level-hothur receives orders directly from industrial customer.

3-level-hothur sells their product through their branch office only.

MSRCASC-MBA DEPT

0 – Level

Manufacture

Manufac.

1 – Level

Manufacture

2 – Level

Manufacture

3 – Level

Manufacture

Industrial

Distribution

Manufacture

.Rep. Tive.

Manufactu

re Sales

Branch

Industrial

Customer

Industrial

Customer

Industrial

Customer

Industrial

Customer


SALES PLAN

The company should have correct and clean sales plan and the same plan must be

followed each and every time. Otherwise, the finished output remaining blocked and

the working capital cannot be obtained to perform the day-to-day activities of the

firm. The interested customers send a letter to Hothur for enquiry about their

availability of the product, price, terms, condition etc. If they find satisfactory the

order will be placed which including quality, quantity of the products, mode of

transport, terms of payments etc. After receives the purchase order the

correspondence section of the sales department scrutinizes the purchase order and if

the same size is satisfactory, Hothur sends a sales order and as acceptance letter. One

of the duplicate copies of the sales order is retained with the dispatch section and one

with accounts department. The purchase then confirms his order by sending back the

acceptance letter duly signed. After receiving the acceptance scrutinizes it and then

the corresponds section seeks to range for the availability on required goods and duly

prepares a ‘Daily Dispatch Plan’ which is passed on the dispatch section and then

carry on. The invoices prepare including all the charges like the prices of the stock in

addition to the freight, local excise duty and other loading & unloading charges. The

company also adopts certain sales promotion activities direct the product toward

customer.

SALES PROMOTION:

Sales promotion is a key ingredient in marketing campaigns sales promotion consists

of diverse collection of incentive tools, mostly short term, designed to stimulate

quicker as greater purchase of particular product as services by consumers on the

trade. Sales promotion covers those marketing activities other than advertising,

publicity and personal selling. It is acts a bridge between personal selling and

advertising.

Hothur Ispat adopts sales promotion techniques:

Hothur ispat is going to provide price off, a straight discount off the list price on

each case purchased during a stated time period.

MSRCASC-MBA DEPT


The company developed customer sensitiveness and it provides incentives and

discounts on regular and bulk purchases.

Sometimes Hothur ispat provides transport allowances to buyers.

MARKET SHARE

It is one of the practices followed by many companies for effective marketing control

and also finds out their position in the market. Market share is “the extent to which a

company has captured total actual sales of the industry”

SHARED VALUE

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

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

most people in the organization. Company is company that insist the following

some core values most of these can be used in the company’s vision statements

as well as quality policy.

The company considers employees are the greatest of its assets. Production and

conductivity come only next to employee welfare. HOTHUR ISPAT PVT. LTD.,

believe that productivity a derivative of employee welfare. HOTHUR ISPAT PVT.

LTD., took initiative to do social project such activities like literacy program for

village people, conduct medical camps in villages, digging are wells in villages,

building bus shelter and employees welfare program.

The company’s focus on the customer and creating culture of interdependence are

embodied in its statements of vision and quality . While the concept of TQM,

TPM, and QC are visible in the form of slogans, posters and well meaning clichés,

the first serious attempt to constitutionalism has started.

Thus, some of the values that are shared by the both employees and the management

at HOTHUR ISPAT PVT. LTD., are as follows:

1) Product and service quality

2) Productive efficiency

3) Punctuality

4) Compensation

MSRCASC-MBA DEPT


5) Employee and societal welfare

6) Customer satisfaction

7) Team work concept

8) TQM (Total Quality Management)

9) TPM (Total Productive maintenance )

10) Quality circle

It has safety measures for the employees who are working.

1) Helmet

2) Shoes

3) Goggles

4) Nose Masks

5) Asbestos suits to protect from Heat

MSRCASC-MBA DEPT


HUMAN RESOURCE DEPARTMENT [H.R.D]

People come first in the new business paradigm. The success of an organization

essentially depends upon the effective harnessing and utilization of this resource. It is

imperative for an organization to constantly nurture people and hone their capabilities

for optimal performance.

HUMAN RESOURCE DEPAREMENT

1. Responsible for manpower planning and recruitment

2. Responsible for all HRD activities

3. Responsible for employee relation and welfare

4. Compliance with all labor laws

5. Responsible for general administration

6. Responsible for monitoring performance appraisals

7. Responsible for all aspects of personal management

8. Ensure good inter personal relations promote positive disciplinary actions

9. Campus interview and keeping a live register of job seekers giving

advertisement in the print Medias

QUALITY OF LIFE

The Hothur Ispat Pvt Ltd., plant is complemented by a beautiful township

Veniveerapur, situated at a distance of twenty km from the Bellary district. The

township architecture inspired by Hampi, the erstwhile capital of Vijayanagar Empire

is equipped with all the modern facilities for the well being of the employees. The

township has temple recreational facilities including sports club, sports room etc., and

all the primary medical facilities. There is a guest house serving Indian and

continental food. Regular group activities and get together bring the residents of

MSRCASC-MBA DEPT


Veniveerapur closer sponsorships to schools sports and other activities so provide

very friendly atmosphere.

WORKING ENVIRONMENT

The working environment acts as the primary motivation for all employees. Hothur

Ispat organization has constantly tried to endeavor to achieve and provide an

atmosphere of perpetual growth and shared learning of all their employees. They

have tried to promote to team culture and encourage a serve of innovation and

positive thought.

HEALTH & SAFETY

The company aims to provide safe working conditions at all the Hothur ispat plant

locations. The Safety and health of the employees is amused by maintaining safe

process, carrying out safe practices, providing a safe environment, importing adequate

and proper training, issuing instructions as regards to the area of operation and

including safety awareness among all employees.

DISCIPLINE

The company believes in maintaining a very high level of organizational discipline by

synergizing personal with technological discipline.

EFFECTIVE COMMUNICATION

The Human Resource Department is handling communication at Hothur ispat.

Communication is given a high priority and this is so because the management at

Hothur ispat considers it necessary to bring down business and increase intra-

organization information flow as a major prerequisite for organizational growth.

WORKING RULES & REGULATIONS

MSRCASC-MBA DEPT


HOURS OF WORK & WEEKLY HOLIDAYS:

The administrative office begins at 9:00 am to 6:00 pm. The plants have timings that

are regulated by services conditions prevailing at the locations. The administrative

office is closed on every Sunday.

ATTENDANCE:

Being at work regularly and on time important part of the overall job performance,

prevents employees from coming to work, telephone should be done to the concerned

supervisor at the earliest possible on first day of absence. For extended illness a

doctor’s certificate is asked by the organization.

PAID HOLIDAYS:

Holidays are given to the calendar year system and will be from January to December.

The employees are eligible for 10 paid holidays in a year. The list of holidays for the

forthcoming year is released by the end of December every year.

LEAVE:

An employee is entitled to avail EL only on confirmation and completion of one year

of service. The employee can avail casual leave and sick leave during

training/probationary period.

SKILLS:

The term “skills” include those characteristics which most people are to describe a

company’s distinctive competence of an organization are part or the organization

character.

ENHANCEMENT OF SKILLS:

Suitable training is imparted to enhance the multiple skills of the executives and to

enrich their multi-functional tasks.

MSRCASC-MBA DEPT


Program is undertaken keeping in view the dynamic changes in the environment,

which are contributed by rapid technological obsolescence. Sever competition with

emerging globalization of markets, increasing consumerism, new concepts of

accountability, and social responsibility among others.

STAFF

Staffing is the process of acquiring human resources for the organization and assuring

that they potential to the achievement of the organization’s goals. Brown and Moberg

define staffing as, “The selection, placement, training and development of

appropriately qualified employees”.

a. The total manpower is Hothur ispat is large. The total number of employees

working in Hothur ispat is 600 & increasing with new job opportunities.

b. Due to the adaptation new technology in the company, the company find, there is a

surplus in the staff, for this reason it declares 94 positions as surplus.

Duties and responsibilities of technical staff are as follows

To Maintain Quality systems

To maintain safe working conditions

Following statutory norms like factories Act, Boilers Act

Operation and maintenance of equipment.

Issue of spares.

Duties and responsibilities of non- technical staff are as follows

To Maintain the records

To prepare a payroll

To maintain proper accounts of organization

STRUCTURING

The design of organization structure is a critical task of the top management of an

organization. It is the skeleton of the whole organization edifice. It prescribes the

formal relationships among various positions and activities.

RECRUITMENT PROCEDURE:

MSRCASC-MBA DEPT


1) Internal Source :- Promotions, Transfer & Redeployment

2) External Source:- Placement consultants, Data Bank, Campus Interviews,

Employee Reference

To fill up the vacancies as approved by the management, two sources will be

identified such as (a) Internal Source (b) External Source

Preference will be given for internal source by tapping the potentials of the employees

processing multiple skills that can be re-deployed. In case of non-redeployment of the

existing employees, external source will be adopted either by approaching Placement

Consultants, Data Bank, and Campus Interviews & Employee Reference.

RE-DEPLOYMENT

Based on the concept of business plan of 100million tons/annum per man year, the

HR department will ensure to maintain the present existing manpower position of

600. The 94 positions, which has been surplus, will be re-deployed to fill up the

vacancies of attrition’s in various departments.

PERFORMANCE APPRAISAL

OBJECTIVE

Annual Appraisal – To assess the performance of the employees annually to decide

rewards and promotions based on the vacancy and the potential of the employees to

shoulder more responsibilities. Periodical Appraisal to assess the performance of

trainees/probationers to decide regularization and confirmation respectively.

SCOPE

a. Annual Appraisal – Appraisal to all regular employees who have complete

minimum six months of service in the organization.

b. Periodical Appraisal – Applicable to trainees and probationers.

MSRCASC-MBA DEPT


The appraisal form will be sent to the HODs requesting them to evaluate the

performance of the trainees/probationers and give suitable recommendations. The

appraisal form consists of three parts such as –

a. Personal profile of the appraise

b. Evaluation of performance

c. Recommendations about the completion/extension of training probation period and

also recommendations with respect to the termination of the appraise

TRAINING & DEVELOPMENT

OBJECTIVE

To bridge the gap between the existing skill and the desired skill thereby improving

the knowledge and overall performance

PROCEDURE INDUCTION PROGRAMME

The new recruits will be given induction program to familiarize about the company,

its products, its services, and the department in which the person is going to be

reported.

IDENTIFICATION OF TRAINING NEEDS AND TRAINING

PLAN

Based on the annual training needs identified by the Head of the Department and also

through SWOT analysis, a monthly training plan will be prepared and circulated to

the departments and the nominated employees on the format prescribed will undergo

training programs within the organization and also will be deputed to external

organization/institution in India and abroad.

TYPES OF TRAINING

A. Safety Training

B. Managerial/Behavioral Training

C. Technical Training

D. Multi-skill Training

MSRCASC-MBA DEPT


(A) Safety Training

Here they give the information about how we make the safety in the organization.

Here they give the first aid medical information.

(B) Managerial/Behavioral Training

The employees based on their training needs will undergo managerial and behavioral

training program such as positive mental attitude, communication skills, international

relationships, time management, team building, effective managerial skill etc

(C) Technical Training

Technical training program will also be organized within the organization as well as

external in India and abroad such as bearings and lubricants, industrial hydraulics and

pneumatics, electro hydraulics, CMMS, CBMS, air compressions etc.

(D) Multi skill Training

This training is normally imported to the employees in the level S1 & S2. The

objective is to enrich their skills from primary skill to secondary skill and then to

complementary skill.

The following documents are being maintained in the training department.

“DOCUMENT” – SHEETS OF TRAINING PROGRAMS

1. Training Nomination Sheet

2. Training Program Attendance Sheet

3. Training program Feed Back Sheet

4. Training Cardex Form

5. Training Program Conducted During the Month Form

MSRCASC-MBA DEPT


EQUATION OF EMPLOYEE QUALIFICATION

Graduates & post graduates 25%

Diploma holders 20%

Engineers 15%

MBA 05%

CA/ICWA 03%

Other 32%

FINANCE DEPARTMENT

GOALS:

Profit maximization

Wealth maximizations

Mission:

MSRCASC-MBA DEPT


Line of business i.e. Sponge iron making. This department plays a very important role

in dealing with money related matters. The main objectives of this department to see

the utilization of resources like men, machine and materials.

Functions:

Funding activity

Banks provide long term funds as well as short term funds.

Long term loans

Short term fund is taken to meet the working capital requirements

Commercial banks help in giving short term funds. The finance department of HIPL

has to be always in touch with the head office, so that the corporate office can transfer

the fund to the unit/factory. This operation is called fund transfer booking.

Treasury Function:

They maintain separate cash & bank balance book. They deal with funds by issuing

cheques or with drawing cash.

Book keeping:

A company should maintain separate books of account. There is a computerized

system including the accounts of purchase, sales cash, bank, stock, tax, fixed assets

etc. The department has to disclose the information to the share holders of the

company.

Audit:

It consists of internal audit, which is for only department.

External audit, which include outside experts.

The closing of account is done on yearly basis. There will be yearly date i.e. on April-

march, which considered as financial year. The main responsibility of accounts

MSRCASC-MBA DEPT


department is to arrange the funds time to time. At the end of accounting period they

prepare profit and loss account, balance sheet. Then the final account is submitted to

share holders. After that the auditors do the final auditing.

MIS

They display information about the cost of production plant performance & profit.

Taxation:

There are different types of taxes like income tax, sales tax, and excise tax etc. the

income tax is of two types one on the company & the other in the establishment. On

the company it is based on the profitability. In the establishment the employees or

contractors will be leaved tax. The authorities take the responsibility of paying tax by

deducting the amount from their salaries.

Preparation of financial statements:

Monitoring financial performance

Looking into the working requirements likes men, material, money etc.

Maintain proper books of accounts

Responsible of auditing.

Remind the management about the plant maintenance and performance by

way of budget monitoring.

Accounts are totally independent. Company maintains it own accounts. Then come

funding. It is based on cost basis. It is not profit center, it is cost center. The functions

of this dependent is to maintain accounts of this unit, coordinating of head office and

the unit for funds see that production is on.

Responsibilities

To ensure that the accounts are maintained properly and costing is calculated using

computerization technique. Deviations of cost are highlighted to management and

effective utilization of the funds. Up to date costing of the iron making, steel making

and rolling operation to be maintained. Any decision regarding the financial

MSRCASC-MBA DEPT


requirements is taken jointly between the site and corporate office. It is taken in a

formalized means.

Raw material purchase accounting

The department maintains the supplier’s ledger. Bills of the suppliers are passed

against the supplies made and payment is made to them. Bills from suppliers are

received in purchase department from where they are forwarded to the finance

department along with the material received.

Checklist of documents to be sent from factory to accounts office.

1. Type of Vouchers

2. Bank Vouchers

3. Cash vouchers including petty cash vouchers Xerox of daily cash book page.

4. Production report

5. Sales Bills/Invoices

6. Purchase Bills/Invoices -Raw material Consumables (Material Receipt Note)

7. Issue slips of consumable items

8. Freight bills

9. Weighment slips – receipt slip

10. Test report of the raw material

11. Daily extract of Gate register

12. Security papers and report

13. Contractors bill (all contractors who send their bills on a monthly basis including

production, security etc.)

14. Positive compliance report

15. Details/bills of monthly expenses such as electricity, water, salary & wages etc.

HIERARCHY OF FINANCIAL DEPT.,

MSRCASC-MBA DEPT

MANAGING DIRECTOR


PURCHASE DEPARTMENT

Sponge iron manufacture is highly sensitive to raw material characteristics. Therefore,

it is highly sensitive to raw material characteristics. Therefore, it is essential to

examine the chemical and physical characteristics of raw materials, both individually

and in combination. The basic raw materials for the production of sponge iron are iron

ore, non-coking coal and dolomite. Several tests are conducted in the company

laboratory to ascertain their suitability in a rotary kiln.

Coal

Important factors determining coal quality are.

MSRCASC-MBA DEPT

GENARAL MANAGER FINANCE

FINANCE EXECUTIVESCHARTERED ACCOUNTANTACCOUNTS OFFICER

SECTIONAL ACCOUNTANTS


Chemical properties such as fixed carbon, ash content, volatile matter, etc, &

Physical properties viz, reactivity and fusion temperature.

HIPL sources its entire coal requirement from the subsidiaries of coal India limited,

which are known for their high quality coal reserves.

Iron ore

In sponge iron making, iron ore is reduced in solid state. Unlike in the conventional

steel melting processes, the gangue content of iron ore cannot be separated as a slag.

Therefore, it becomes imperative to select an ore with a high Fe content and a low

gangue content, to optimize yield during steel making. Apart from this, to ensure a

better kiln campaign life and output, the iron ore is made to undergo a series of other

tests viz. shatter, tumbler & abrasion indices, reducibility etc., By virtue of its

location, HIPL enjoys the proximity of goods iron ore reserves, suitable for sponge

iron making, in the southern part of India. HIPL sources its iron ore from the hospet

and Bellary region, which has one of the finest quality iron ore in the region.

Dolomite; - Dolomite acts in the process as a desulphuriser, removing sulphur from

the feed mix during the reduction process. It is mixed in small proportion along with

other raw materials before charging into the kiln.

DISPATCH DEPARTMENT

The finished product sponge iron is nothing but a raw material for manufacturing

steel. The sponge iron is transported to steel factory in goa for future processing,

where the sponge iron is used to manufacture steel.

Storage Area

Recommended storage period for raw material & coal is three for days only.

Storage with shed will be provided especially to protect coal during monsoon as

coal absorbs more water

Shaded storage will minimize storm water contamination.

MSRCASC-MBA DEPT


Coal shed

Adequate sprinkling system will be provided to arrest dust flying in dry season.

Rapid gravity filter with sand bed filters will be provided to treat the out flowing

storm water.

AIR POLLUTION CONTROL

All adequate measures to arrest air pollution at individual sources will be taken

Each crusher will be provided with bag filters and chimney

Bins/cyclones will also be provided in the downstream of crushers

All raw materials will be fed through a common set of bag filters before entering

kiln

Hot flue gas with dust coming out of kiln will be passed through gas cooler

followed by bag filters

Finally the cooled gas will be passed through the wet scrubber before letting off

through the stack.

CHIMNEY HEIGHT & GROUND LEVEL AMBIENT AIR QUALITY

Basic of chimney height calculation depends on generation of SO2

SO2 generated due to coal burning reacts with dolomite to produce CaSO4

Considering 75% of SO2 will be converted to CaSO4, the SO2 emission is

estimated at 26.62 kg/hr

Chimney height H=14(26.62)0.3 =40 M

With emission of particular matter < 100mg/nm2 & SO2 emission limited to 26.26

kg/hr and H= 40 M above ground level, flue gases will get dispersed with

sufficient dilution.

SOLID WASTE MANAGEMENT

Dolochar generated @ 74 tpd

Dolochar having high calorific value (3000kcal) is best utilized as fuel

MSRCASC-MBA DEPT


Dolochar mainly consists of unburnt coal particles, Sio2, unburnt/fused lime, trace of

ash, AI2O3 & fe2O3 particles

HIPL proposes to store dolochar and use it as fuel mixed with coal in the fluidized

bed boilers to generate steam for the proposed 25 MW co-generation captive power

plant.

The waste heat recovery power plant will be promoted by M/s Hothur power supply

Co. Ltd., a Hothur group company.

NOISE POLLUTION

Noise emitting sources identified are ID fan, de-dusting fan, air compressor,

ventilation fans etc.

Although noise cannot be eliminated totally, it can reduce to limits by providing

silencers, hoods and acoustic laggings.

Expected noise level will be 20-30 DB

OTHER MEASURES FOR ENVIRONMENTAL PROTECTION

Green belts: green belts and green pockets will be provided along the periphery of

the plant (buffer zone) and in the plant premises to further minimize the air pollution

Land Scaping: other than peripheral green belt, the plan area will be provided with

grass lawns, evergreen trees, lowers blossoming trees within the unused land area

available inside the plant.

Environmental monitoring: as a part of routine follow-up, regular monitoring of

stack emissions, work zone dust level, ambient air quality, noise level, and water

quality would be carried out. The monitoring results will reflect the efficacy of the

environment protection measures and overall cleanliness of the plant.

Hothur sponge iron Ltd., considers the environment and pollution control as an utmost

priority and specific emphasis is being given to the pollution control measures as

MSRCASC-MBA DEPT


recommended by the statutory government bodies keeping in view to the future

ancillary projects. .

CHAPTER-VI

SWOT ANALYSIS

STRENGTHS

There is no labour union in the organization; both management and work force

are in harmony, hence there are no internal disputes.

HIPL has its customers, suppliers spread throughout south India, which

enables them to acquire resources and dispatch goods easily.

The plant is situated in very close proximity of iron ore depositions; hence

availability of raw materials is easy.

They have sufficient land for future expansions and new production projects

developments.

They have very good transport facilities, which help their marketing activity

and in house transportation easy.

High employee morale, resulting in high retention of employees,.

Their new power plant which is ready to start will help them generate power

on their own which will decrease the production cost of the company.

MSRCASC-MBA DEPT


WEAKNESS

Not able to make payment of creditors on due date, leading to mounting

financial crisis.

Not able to get the grants from various financial institutions, hence getting

funds for new projects is difficult.

Concentrated on South India market but they neglected the other parts of

India.

Costs of using electricity consumption is high, it is not yet started power plant

even it has resources.

Most important is that company has more employees than required, which

decrease their efficiency and utilization of resources.

The company is entirely depends on external transportations like truck

operators, railways etc because of these depends on external conveniences

they have to sometimes suffer loss.

OPPORTUNITIES

Globalization of India economy bound to increase demand levels.

Major automobile units have come up in south India like Toyota, Volvo etc,

which means more customers in the plants proximity.

Steel industries such a Jindal, kalyani, mukunda have come up in Bellary

region from which demand for steel will increase.

Self power generator yet to be started would make effective utilization of

power leading to lower cost of production.

The coal based sponge iron segment has witnessed rapid growth in numbers,

promising a sound future for the industry, this has led to increase in both

capacity and production.

Manufacturing sector on a growth path, which means there would be more

requirement of sponge iron.

Company has enough resources to expand it, to meet their increase demands.

THREATS

MSRCASC-MBA DEPT


Day by day the employees are hopping their job. Many industries are

diversified into the steel producing and existing companies are expanding their

capacities, due to hopping of experienced employees there is a talent crunch.

Increasing price of raw materials like coal, iron ore, etc leading higher

production costs

Competition from the new entrants in the region, have led the company to sell

their output at a lower cost than their production cost recently.

Though they have many environmental policies, they are not effectively

adopted, hence the company is facing problem from environment protection

agencies

LEARNING EXPERIENCE

It was a great opportunity to me to have in plant training in one of the best

organization. During implant training of duration of four weeks in the company I have

gained experience regarding the production of sponge iron and need for organization

study. Application of managerial theory into practice has been understood. The plant

is systematically designed so that the production process is carried on without any

delay. All infrastructural facility and safety measures have provided to the work place

at to avoid accidents.

SAFETY MEASURES

MSRCASC-MBA DEPT


1. Helmet

2. Shoes

3. Goggles

4. Nose Masks

5. Asbestos suits to protect from Heat

During implant training of duration 4 weeks in the company, I have gained experience

regarding the concept and need for organization study, it was totally a new experience

entering into the organization.

In the beginning of the training, I went to production site where assembling of the

material is taking place, there I understood as to how the production work is divided

and how the responsibilities are a located. I understood the utilization of decentralized

powers in the production department. After the production site, in the subsequent

weeks I went to different departments like finance, marketing, purchase, etc. I was

able to understand the importance of each department and their contribution towards

the achievements of the company objectives..

Employees from every corner of the department helped me in getting the required

information for the successful completion of this in-plant training. They cooperated

well when I use to disturb them with so many queries in our mind to be cleared from

concerned person during the visits to the respective departments.

The training provided an opportunity to relate classroom learning with the

management reality. To summarize the training period in the company was a

wonderful small time in the huge corporate world

CONCLUSION

By study of the working of the HIPL Ltd., we can know that the performance of the company

is very good in all departments. By overcoming the problems faced by the environment

protect in agencies and rise in the prices of raw materials especially iron ore, HIPL Ltd., is

able to manufacture sponge iron at low cost. The performance of the company is very good. It

is making good profit and serving the sponge iron industry.

MSRCASC-MBA DEPT


CHAPTER-VII

FINDINGS

There are ample opportunities for new entrants to this industry in Bellary Region.

The company fails to control pollution even though it adopted many pollution

control measures.

It is facing a problem of power shortage.

It is one of the company that follow high values towards its customers then

employee.

Salary package of HIPL is reasonable to the employees, when compared to

their competitors.

SUGGESTIONS / RECOMMENDATION

MSRCASC-MBA DEPT


The training program of any company should be constantly evaluated to make it

more useful and relevant to the company’s requirement. The business

environment is very competitive and unless the company review its ongoing

training program regularly and adopt itself to the changing requirement it

would be very difficult to compete in the fast changing global business

scenario.

o Employ training needs should be assessed yearly, that is at least twice in a

year.

o Training program should be planned according to the changing environment

of the organization.

o On the job training for all level of employees should be give more importance

than off the job training, because on the job training has the advantage of

giving firsthand knowledge and experience under the actual working

conditions.

o The training program that is provided to the employee should include training

on stress management in order to increase the productivity.

o Evaluation of the training program should include cost analysis seeking

opinion of the trainee’ superior, measurement of improvement in trainees on

the job behavior.

BIBLIOGRAPHY

BOOKS

Personnel & human resource management’, P.Subba rao, Himalaya publishing

house, (2006)

Financial management, Prasanna Chandra, Tata McGraw Hill - (2004)

Financial management, I M Pandey, vikas, (ninth edition 2005)

WEBSITES

MSRCASC-MBA DEPT


www.hothurispat.com

www.hothur100%eou.com

www.google.com

.

MSRCASC-MBA DEPT

http://www.hothurispat.com/

PROJECT_OF_HOTHUR_ISPAT[1]23

Documents

Transcript of PROJECT_OF_HOTHUR_ISPAT[1]23