CHAPTER - I INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION In India, Human Capital Management Challenges focuses on the Indian talent pool and identifies why companies are finding it difficult to identify, recruit, reward and retain talent. It provides an insight as to why companies find it difficult to retain talent by questioning certain fundamental assumptions held by organisations, such as the role of Human Resources.

Human capital management has become a critical issue across the globe. Even in a land of billion people, identifying the right talent, training them and retaining them has become an uphill task. The study also looks at the talent pool available and demonstrates why companies have to alter their strategies to retain this talent pool. Finally, the study will provide a practical and simple approach to the human capital agenda.

In ideally suited for individuals responsible for setting and implementing the human capital agenda for their organisation. It is equally suited for talent management organisations/recruitment agencies, budding and practising managers and individuals interested in human resources management.

1.2 TITLE OF THE PROBLEM The research study is titles as A study on Human Capital Management with reference to Sri Vela Smelter Private Limited, Paramathi Velur.

1.3 STATEMENT OF THE PROBLEM Over the last ten years, the issue of human capital and its

contribution to business success has risen up the management agenda. It is now generally considered that many business opportunities can be found in a firms intangible assets, which include intellectual capital and a diverse, knowledgeable and skilled workforce. Conversely, it is also widely believed that poor management of human capital is one of the most significant risks facing organisations, as demonstrated by a survey of CEOs carried out by McKinsey Quarterly. The results identified talent constraints, poor public governance and climate change as the most critical issues for organisations to address.

Organisations are striving to find better ways of understanding and reporting on the value of people to business and the part that human capital plays in sustainable future success. Issues that management should be, and are, starting to consider in their disclosures are: The inclusion of HCM in the development of business strategy and objective setting Consideration of areas such as: diversity, training and development, equal opportunities and positive leadership Employee health and safety, and well-being and

absenteeism

Attraction and retention of the workforce, and turnover rates.

1.4 REVIEW OF LITERATURE With signs indicating the gradual end to the recession, its likely that well start to see organizations injecting capital back into their companies. Typically, when I think of capital, I think of monies being put into infrastructure improvements, equipment, or other assets in order to build and grow the business. Based on the drastic workforce reductions weve seen in recent months though, I think a new paradigm will emerge. I believe we will start to see organizations looking to first invest in their talent inventory and strategies to rebuild the workforces. This development illustrates the continuing maturation of Human Resources (HR) as an incredibly strategic discipline for firms to achieve growth objectives. Already a key member of the executive team, HR is being looked upon to evaluate every area of the workforce, and now is being pressured to offer up much more than ever before. Theyre looking at labor-related expenses against operational realities, with the objective of increasing cost efficiencies and developing an honest-to-goodness talent supply chain. And so, the term Human Capital Management (HCM) comes into play. The concept of HCM has been around for years, but its meaning remains ambiguous, and the term is often interchanged with others, such as organization management, human resource management, and personnel change management. Further adding to the ambiguity is the number and complexity of the processes which comprise HCM, including:

Workforce planning Candidate attraction and searching Selection

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On-boarding/off boarding (orientation/termination) Skills management Training and development Personnel administration Compensation Time management Payroll Benefits administration Personnel cost planning Performance appraisal Travel management

So what is HCM? A very simplistic definition is: the development of all labor-related issues that impact a firms strategic and operational objectives, including: the employment of people; the development of resources; and the utilization, maintenance, and compensation of their services aligned with the job and organizational requirements.

Today, the HCM discipline is more critical than perhaps ever before. Adequately managing every facet of talent and labor requires a detailed examination of all segments of the workforce against every area of operational detail. Bontis, N. & Fitz-enz, J. (2002). Intellectual capital ROI: a causal map of human capital antecedents and consequents. Journal of Intellectual Capital, 3 (3), pp. 223-247. The authors report the results of a research study that examine the antecedents and consequents of effective human capital management

through the integration of the quantitative and qualitative measures. The research sample consisted of 76 senior executives from 25 companies in the financial services industry. A holistic causal map is yielded on the ground of the integrated constructs from the fields of intellectual capital, knowledge management, human resources, organizational behavior, information technology and accounting. Participating organizations and researchers can reap the benefits of the study through visually comprehending the driving factors that determine the effectiveness of an organizations human capital capabilities. Practitioners and researchers will have a better understanding in allocating resources with regard to human capital management more efficiently. The potential outcomes of the study are limitless, since a program of consistent re evaluation can lead to the establishment of causal relationships between human capital management and economic and business results. Brown, M. G. (1999). Human capitals measure for measure. Journal for Quality & Participation, 22 (5) September/October, pp. 28-31. The author points out some problems of the HR metrics on the value and performance of the human asset. The crude measure factors include turnover, education level, training attended, and development plan objectives. He therefore suggests 4 sub-metrics for creating a human capital index, namely number of years in business/field, level in the company (by job grade or organizational chart level), performance rating, and number and variety of positions/assignments held. Nevertheless, it seems to raise the issue of subjectivity in determining the weights/scores to be marked on each category, leading to a relative imbalance of the human capital index used to justify the human asset in
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a particular firm and industry.

Combs, J. G. & Skill, M. S. (2003). Managerialist and human capital explanations for key executive pay premiums: a contingency perspective. Academy of Management Journal, 46 (1), pp. 63-73. This study examines a contingency perspective in which the source of pay premiums depends on executives power and firms governance strength. Two main theories, which are managerialism and human capital, are drawn to investigate the executive-specific attributes (power and skill) so as to explain variation beyond what firm- and job-specific variables are predicted. Results suggest pay premiums are a consequence of human capital (compensation for unique and valuable managerial competencies) in some firms and managerial entrenchment (executives using their power to maximize salary) in others.

Crutchfiled, E. B. (2000). Developing human capital in American manufacturing: a case study of barriers to training and development. New York: Garland Publishing. This book reflects a practical research of a case study approach on the development of human capital through the firms training programs. An exhaustive stream of literature review examines a broad range of themes and theories on the dynamically competitive environment facing the American workforce at the expense of attempting to maintain a competitive edge. Also, the concepts of human resource development and organization development present the theoretical best practices for how organizations should be working to develop their human asset and become a high performing organization. With regard to the research design, the justification for a single case study, site and sample selection, data collection, trustworthiness of the
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data, data analysis, and data management are discussed. The results of the study feature three themes as to why the training and development may not be able to have a positive impact on organizational performance; the unsystematic implementation of the training needs assessment, the perception of a lack of clearly defined and operationalized business goals, and the inability of the leaders to look at human performance in relation to all aspects of the organization barriers to apply comprehensive solutions to performance problems.

Doyle, D. P. (1994). Developing human capital: the role of the private sector. Theory into Practice, 33 (4) Autumn, pp. 218-226. A review of the private sector role in human capital investment is explored on two main streams. One is conventional private sector investment in human capital: firms underwriting the cost of employee education and training. The other is private individuals investing in their own human capital. Most large, modern firms in the developed world tend to increasingly invest their money and energy in education and training programs insofar as it generates profitability. The author concludes that an investment in human capital will be treated as precisely as that in marketing, advertising and research and development where a competitive advantage is attainable.

Farmer, M. C. & Kingsley, G. (2001). Locating critical components of regional human capital. Policy Studies Journal, 29 (1), pp. 165-179. Based upon the economic context in a regional setting, the paper offers a rationale and an outline for developing a human capital approach to assess strategic resources needs for competitive success of different regions. The achievable process is referred to a creation of strategic
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human capital where there is the right mix of people and skills inside a given network that induces an extra-competitive advantage. The authors also claim that when economic development is aligned with ecological potentials, the technologies driving the necessary economic activities will be mobilized by higher-skilled, human capital-intensive companies. In a holistic view, regional competitiveness appears in the human capital theories as innovations that allow an area to differentiate their final product from some other source: offer better quality or unique features, thereby leading to a sustained advantage and a realization of true economic profits over the competitors.

Garavan, T. N., Morley, M., Gunnigle, P. & Collins, E. (2001). Human capital accumulation: the role of human resource development. Journal of European Industrial Training, 25 (2-4), pp. 48-68. The authors discuss the issues of the conceptualization of human resource development surrounding the firm strategy through the lens of both individual and organizational perspectives. Based upon these two strands, four attributes of human resource as capital are investigated; flexibility and adaptability, enhancement of individual competencies, development employability. of organizational competencies, capital and from individual individual

Considering

human

perspectives, the notions of employability, performance and career development are of most concerns to increase employees capabilities. With regard to the organizational context on human capital accumulation, the core competencies and the tacit knowledge or social community perspective are developed in people over time via education and experience. Also, a discussion on the implications for human resource development in both spectrums gives rise to the potentiality to
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leverage the human capital formation within the organization.

Giannini, M. (2000). Multiple regimes in human capital accumulation. International Journal of Manpower, 21 (3/4), pp. 246-263. The research attempts at providing an overall theoretical framework investigating the accumulation of human capital by a dynamic interplay, or complementalities, between the individual behavior and human capital distribution. In the light of the macroeconomic context, the author postulates that the individual decision about investment in education depends on unemployment among unskilled workers; the higher this is, the lower the return to work as a unskilled worker and the higher the incentive to invest in education.

Gratton, L. & Ghoshal, S. (2003). Managing personal human capital: new ethos for the volunteer employee. European Management Journal, 21 (1) February, pp. 1-10. Due to the notion of democratization in the organization, a combination of individual autonomy in the work life and task variety leads to a greater personal responsibility for both developing and deploying their personal human capital. The authors define human capital as the composite of an individuals intellectual, social and emotional capitals by which it is suggested that volunteer employees need to align their personal values with work to reflect the most satisfying passions on a human aspiration, thereby continuously improving on ones own knowledge, relationship and sense of self-efficacy. Huang, G. Z., Roy, M. H. & Ahmed, Z. U. (2002). Benchmarking the human capital strategies of MNCs in Singapore. Benchmarking
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An International Journal, 9 (4), pp. 357-373. This study aims to explore the role of human capital strategies in the survival and growth of promising local enterprises (PLEs) and existing multinational corporations (MNCs) in Singapore. The focus of the research aims to benchmark the human capital practices in the MNCs to the extent of whether PLEs are learning from the HR strategies of MNCs. The analysis draws on empirical data surveys from 218 PLEs and 261 MNCs through an extensive discussion on the issues of value of human capital, recruitment and selection, training and development, career management, corporate culture and government role. The results show substantial contrasts in the philosophical and practical applications of human resource strategies. More specifically, the conclusion of the study entails the fact that PLEs could learn from benchmarking the human capital strategies of the MNCs in the following arenas: modify philosophical understanding with regard to the importance of human capital in creating a competitive advantage; develop different approaches to enhance the value of human capital, broaden the focus of selection and training methods to include critical thinking, teamwork and leadership; and expanding a reward scheme, apart from extrinsic incentives, to help align organizational culture with new values of teamwork leadership and learning.

Kannan, G. & Akhilesh, K. B. (2002). Human capital knowledge value added: a case study in infotech. Journal of Intellectual Capital, 3 (2), pp. 167-179. The paper addresses an essential need for managers to develop a behavioral tool to comprehend the factors that influence human capital knowledge value add so as to increase the organization value add. The proposed tool helps understand the knowledge professionals
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perceptions of the organizations culture toward intellectual enterprise, knowledge management support systems and processes, and individual value add, the perceived performance, innovation and consequences of quitting. The firm can move individuals to a more value-added position by giving them greater opportunities for knowledge sharing and capture, rewarding initiative, sharing and innovation as well as learning. Also, top management visibility and support, including increased leader involvement and guidance, can elevate feelings of belonging and importance to improve performance and the human capital knowledge value added.

LeBlanc, P. V., Mulvey, P. W. & Rich, J. T. (2000). Improving the return on human capital: new metrics. Compensation & Benefits Review, 32 (1) January/February, pp. 13-20. The article supports the use of the human capital approach to indicate the improvement of the return on human capital. By adopting such an approach, it means that the firms have to view their employees as an investment to be optimized rather than a cost to be minimized. Human capital is optimized when there is significant knowledge, motivation and opportunity to perform. A six-step process of the human capital approach is introduced to help managers to make a better decision on the investment of the human capital. They are in a sequential order:

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1) Identify needed business improvements 2) Locate people leverage points and sort by investment type 3) Discover measures of key people leverage points 4) Find relevant internal/external benchmarks and asset gaps 5) Calculate human capital investment cost/return and break-even timeframe 6) Make human capital investment decision

Lepak, D. P. & Snell, S. A. (1999). The human resource architecture: toward a theory of human capital allocation and development. Academy of Management Review, 24 (1), pp. 31-48. The authors draw on the resource-based view of the firm, human capital theory, and transaction cost economics to develop a human resource architecture of four employment modes: internal development, acquisition, contracting, and alliance. The architecture is built on the two characteristics of human capital: uniqueness and value-creating potential. The relationships among employment modes, employment relationships, and human resource configurations, can be examined along this HR architecture. It also provides a structural perspective for both academics and practitioners to understand which forms of human capital have the potential to be a source of competitive advantage at present and in the future. Moreover, this study encourages researchers to examine how firms integrate flexibility in to the HR architecture to adapt to dynamic changes while maintaining congruence among the individual components to meet the existing needs.

Maruping, L. M. (2002). Human capital and firm performance: understanding the impact of employee turnover on competitive
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advantage. In: Academy of Management Meetings, August, Denver, CO, pp. 1-27. Organizational performance outcomes due to the impact of turnover depend upon the network centrality, prominence, range and brokerage of the departing knowledge actors in the knowledge network as well as the structure of the organizational social network. The author points out that in the competitive environment voluntary turnover is a mechanism for the knowledge community to refresh and expand the existing network through the mobility of new talent with a new set of professional social webs. In addition, understanding how turnover among knowledge workers impacts firm performance through a social network perspective and the pursuit of competitive advantage will provide some insights into how human resource systems can play a major role in organizational strategy.

Mayo, A. (2001). The human value of the enterprise. London: Nicholas Brealey. The book provides a coherent model of measures relating to human capital, offering a standalone means of recognizing the vital contribution of people to value creation. Acquiring new human assets, retain human assets, and growing human assets are the key processes in managing the human capital. Since people bring their personal human capital, in all its diversity, to the organization, individual motivation and commitment should be developed and nurtured through a firms innovative/creative culture.

McNamara, C. P. (1999). Making human capital productive. Business & Economic Review, 46 (1) October-December, pp. 10-13. The article features the application of the principles of human
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capital investment employed by some internationally leading firms, such as Coca-Cola, Microsoft, Southwest Airlines, in order to maximize the human asset within the firms. A 10-step action plan that encompasses the best practices of these very successful companies is: 1) adopt the Truman and Lincoln philosophies; 2) communicate commitment to human investment; 3) establish new expectations; 4) reorganize around teams; 5) maximize employee involvement; 6) focus on people initiatives; 7) establish a world-class human resources organization; 8) develop and implement motivational systems; 9) conduct annual executive review; 10) take the leap (seen the process of making the human capital more productive as a journey, not a destination).

Molina-Morales, F. X. (2001). Human capital in the industrial districts. Human Systems Management, 20 (4), pp. 319-331. A focus on the creation of human capital in the industrial districts (regional clusters) may reflect a differentiation of the firm strategy perspectives from one to another, especially within the same industry. The industrial districts are identified by both high density of firms in a territorially bounded area and a community of people sharing values and beliefs (e.g. Silicon Valley). In this research, the author aims to develop a conceptualized framework to suggest the firms to take on a more active role in exploiting local identifiable human resources. Also, the firms should interact with the local environment in order to shape and leverage on the endowment and potential of local knowledge resources.

Nerdrum, L. & Erikson, T. (2001). Intellectual capital: a human capital perspective. Journal of Intellectual Capital, 2 (2), pp.
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127-135. In this article, intellectual capital is seen as complementary capacities of competence and commitment. Based on theoretically and empirically robust human capital theory, the authors define intellectual capital as individuals complementary capacity to generate added value and thus create wealth. Resources are then perceived to be both tangible and intangible. This view is an extension of human capital theory to include the intangible capacities of people. Implications for further research are discussed.

Nordhaug, O. (1993). Human capital in organizations: competence, training and learning. Norway: Scandinavian University Press. The purpose of the book is to outline and discuss important conceptual, theoretical, and empirical aspects of human capital in organizations. The author claims that it is necessary to develop a groundwork for the study of individual competences, competence bases, and competence networks in firms. With regard to the individual context, the employee competences (defined as the knowledge, skills and aptitudes that are relevant for work), which influence the actual performance, are categorized into six typologies: Meta-competences, industry competences, intraorganizational competences, standard technical competences, technical trade skills, and unique competences. Drawing on insights from the organization theory, the corporate context of the competences is established (e.g. task specificity, unit specificity, internal relation specificity, durability, diversity, internal exclusiveness, and transferability). In terms of competence networks, competence configuration and competence flow are discussed to mark the analytical perspective of the firms competence systems. Moreover, the empirical research shows that training and development contributes to human
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capital provision in organizations.

Oxman, J. A. (2002). The hidden leverage of human capital. MIT Sloan Management Review, 43 (4) Summer, pp. 79-83. Amid the economic downturn and the mediocre job market, the author suggests that the real value of human assets be more appreciated in the process of reengineering and core competency invigoration. Along that line, four broad critical areas of the leadership model to help augment the business success are presented: strengthening key relationships across customers, employees and shareholders; leveraging downtime by capitalizing on underutilized staff for innovation initiatives; refocusing staff on whats important at the company by prioritizing strategic roles and clarifying individual goals; and building return on compensation by forging stronger links between the pay people get and the results they achieve. The author also claims that in either good or bad times of the economy the firms should pursue the fair play to the key stakeholders, including employees. By failing to

realize the full potential of the human capital along the fluctuating business wave, they may not be ready for the new challenge of change when the economy starts to recover.

Rappleye, W. C. Jr. (1999). Human capital management: the next competitive advantage. Across the Board, 36 (8) September, pp. 39-47. There is a growing realization that investment in human capital has the potential to become the next great tidal movement in work and life, just as the information-technology revolution supplants the industrial revolution. The article reflects a diverse view of human capital management in creating a competitive advantage through the
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sight of professionals of HR consulting firms and HR directors of leading international companies. The avenue to achieve that notion takes a multifaceted effort of all managers at all levels to bring together the essential enablers of human capital in business. They are peoples competence, corporate culture, internal development, employee engagement, communication, and creative learning. Rastogi, P. N. (2000). Sustaining enterprise competitiveness is human capital the answer? Human Systems Management, 19 (3), pp. 193-203. The author puts an emphasis on the human capital as the ultimate resource for sustaining the competitive performance of an organization over time. Such a dynamic resource needs to be continuously developed and sharply honed in the light of a firms changing business environment and the logic of creating customer-valued outcomes. A human capital organization is characterized as a storehouse of business expertise; a growing pool of cutting edge competencies, skills, best practices, techniques, and tools; a collaborative collectivity of autonomous and peak performing employees; an exemplar of speed and brain power in all domains of its activity; an agile player responding rapidly to market shifts; and a bearer of a culture of constant innovation and value creation.

Weisberg, J. (1996). Differential teamwork performance: the impact of general and specific human capital levels. International Journal of Manpower, 17 (8), pp. 18-29. The focus of the study is twofold: first, to determine if, from an organizational perspective an incentive scheme augments the utility to the firm; and, second, based upon the notion of general human capital (indicated
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by the average number of years of schooling of the team members) and firm-specific human capital (indicated by the average workers experience or tenure with the company, if workers embodying higher human capital levels represent higher productivity, compared with those of lower human capital levels. The statistical methods are performed to test the hypotheses and find the correlation between related variables. The result shows that the positive impact of the level of education on the level of performance may be explained by the anticipated higher returns for higher levels of education. Meaning that motivated, committed workers with higher education tend to stay with the firm longer (high tenure) and produce higher productivity. The research also suggests that the relative utility of designing incentive scheme plans in organizations can provide a greater extent of understanding in the development of human capital and personal characteristics.

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1.5 OBJECTIVE OF THE STUDY To study about the Human Capital Management of the Sri Vela Smelters P.Ltd., Paramathi Velur. To study about employees satisfaction To study among the company training programs and motivation To study about the support from other employees in the organization. To study about their working arrangements.

1.6 SCOPE OF THE STUDY Human Capital management continues to be a subject of interest and importance to human resource specialists. For decades, Human Capital management has received considerable attention in the literature, from both researchers and practitioners alike. Many authors maintain that there is a considerable gap between theory and practice, and that human resource specialists are not making full use of the psychometric tools available.

1.7 OPERATIONAL DEFINITIONS Human Capital management has more than just an evaluative function. By identifying areas of weakness and correcting these with relevant training, appraisals serve a motivational purpose. By setting goals, a sense of direction is instilled, and job satisfaction and motivation improved.

The present trend is towards the development of teams- with each team member complementing rather than competing with each other. The development of work teams allows team members to specialize in areas in
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which they are interested in or good at. The appraisal method is increasingly used to fill the skills gap in teams, rather than using them for general assessment of performance.

1.8 LIMITATION OF THE STUDY The study is based on employees self evaluation. So there is a possibility of change in the attitude in relation of the original attitude. The study is restricted to the employees of one company and so the results can be generalized. Due to time constraint the sample size is limited to 125 only.

1.9 CHAPTER DESIGN The study is divided into five chapters of which the present introduction chapter deals with introduction about the study, consumer attitude, statement of the problem, relevant review of literature, objective, scope and limitations of the study. Chapter two deals on research methodology of the study. Third chapter describes profile of the study and area. Chapter four makes a detailed analysis and interpretation on collected data. At last findings, suggestions and conclusion is given in fifth chapter.

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CHAPTER II RESEARCH METHODOLOGY

2.1 INTRODUCTION Research is common parlance which refers to a search for knowledge. The advance learners dictionary of current English lays down the meaning of research as a Careful investigation or inquiry specially though search for new facts in any branch of knowledge.

Research methodology is a way to systematically solving the research problem which may be understood as a science of how research is done scientifically.

If the study with various steps that are generally adopted by a researcher in studying the research problem along with the logic behind them.

2.2 RESEARCH DESIGN A Research design is arrangement of conditions for collection and analysis of data in a manner that aims to combine relevant to the research purpose with economy in procedure Descriptive research design is used in this project study. Descriptive research design Descriptive research includes surveys and fact- finding enquiries of different kinds. The main characteristic of this method is that the researcher has no control over the variables that can be only reported about what has happened or what is happening in the organization.

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a. Area of the study The area of study refers to Sri Vela Smelter Private Limited, Paramathi Velur, due to availability of people at all levels of educational and finance status. It is also easy to collect the needed relevant primary data from the employees.

b. Period of the study The present study period was two months for collecting primary data from the employees and secondary data collected by the consumers of laptops.

c. Collection of data The data is collected for the study by using both primary and secondary data.

1. Primary Data Primary data are those which are collected freshly with originality in character and were collected through structured questionnaire and schedule from the labours.

2. Secondary Data Secondary data are collected with the help of, Company records. Annual reports. Discussion with the personnel manager and staff. d. Sampling design A sampling design is a definite plan for obtaining a sample from a given population. It refers to the techniques or the procedure that researcher would adopt in selection items for the sample.
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Simple random sampling is used in this project study. Simple random sampling is where each and every item in this population has an equal chance of inclusion in the sample and each one of the possible samples in case of finite universe which has the same probability of being selected. Sample Size The sample size is approximately 120 Sampling Technique The total population is initially divided into areas in and around Namakkal District. Convenient sampling is felt to appropriate for the present study because convenience sampling is a strategy that uses the most readily accessible objects or persons as subjects for the present study.

e. Hypothesis : 1. Null hypothesis: There is no significant relationship between age and opinion level regarding safety and measures. 2. Null hypothesis: There is no significant relationship between experience and opinion level regarding safety welfare measures.

f. Statistical tools The data collected were analysis using tests like simple percentage method, Mean score method and Chi-square analysis.

I.

Simple percentage method Percentage = Number of respondents x 100 Total respondents

II.

Mean score method:

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Mean score =

Total score x 100 Maximum score

III.

Chi-square test It is applied in statistics to test the significance of association between two attributes. The procedure followed

1. Formulate the null hypothesis 2. Fix the level of significance 3. Calculate the test statistic 2

(O-E)2 E = (R-1) (C-1)

Degrees of freedom Where O E R C = = = =

Observed frequency Expected frequency No. of rows No. of columns

The expected frequency is calculated by using the following formula

Row Total x Column Total Grand Total

If the calculated value is equal or greater than the table value, the null hypothesis is rejected. But if the calculated value is less than the table value, the null hypothesis is accepted. .

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2.3 CONCLUSION

It describes about design the project of the study in the research methodology part using sampling design, data collection methods and analytical tools. We also come to identify that the limitations of this project work.

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CHAPTER - III PROFILE OF THE STUDY

3.1 INTRODUCTION M/s. SRI VELA SMELTERS PRIVATE LIMITED is an industrial unit in the SME Sector (Small and Medium Enterprises) manufacturing MS INGOTS, TMT Rods. Angles and Squares in the Southern part of the Indian Sub-continent. The plant is situated at 1/628 Pommakkapalayam. Nallur Kandampalayam Village, Paramaihi Velur, located in Namakkal District of Tamil Nadu. The registered office is situated at 76-D. Valarai Gate, Velur Road, Tiruchengode, Namakkal District.

3.2 HISTORY OF THE COMPANY The unit has a success story behind the tireless efforts of Sri. S. Marimuthu, who started scrap iron trading activity some 50 years ago. In the late 1980s his sons Sarvasri M. Varadharaju, M. Lakshmanan and T. M. Murugesan ably supported the good efforts of their father and together they have ventured into this big industrial unit.

The TMT Rods are branded as "VELA TMT" & "VELA TOR". The company's products are ISI certified and is having a growing demand in Namakkal, Salem, Dindigul, Tiruchi, Coimbatore, Tripur, Chennai Districts in Tamil Nadu, Kerala and other states of southern India. Vision and Values

Total Customer Satisfaction. That's what driving us to do the best. Right from offering high quality TMT Bars to ensure total customer

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satisfaction through the provision of value added products delivered on time and to the specification.

3.3 MANAGEMENT The company is presently headed by Sri. T.M. Murugusan, Managing Director who is sincere, motivated with hands on approach towards all issues and leading from the front. He is ably assisted by his brother Sri. M. Varadharaju and his sister in law Smt. L. Dhanalakshmi. Sri. M. Varadharaju has been involved in the running of the business for the past twenty years and have acquired considerable knowledge in scrap purchase, transport and general management. Smt. L. Dhanalakshmi has been inducted into the management after the sad demise of her husband Late M. Lakshmanan. She is also looking after the scraps purchase and general management. The future of the management will also be still rosy as two of the family members has completed their engineering studies in MS in the United States. Hence, succession planning is given a right consideration by the present management.

The boards of directors consist of: Board of Directors: 1. Sri. T.M. Murugesan. Managing Director 2. Sri. M. Varadharaju, Director 3. Smt. L. Dhanalakshmi, Director

Ms Ingot Manufacturing Project During the month of May 2004, the company successfully established 6.0 tons capacities Induction Furnace, with a production capacity of 60 tonnes of MS INGOTS per day. A standby furnace of the same capacity supports this furnace. They have established the second furnace during
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February 2005 supported by a second standby furnace. The capacity of the two furnaces put together is 120 tonnes per day.

Rolling Mill Project After the big success in establishing and running the MS INGOT project, the company ventured into establishing the ROLLING MILL, as a measure of forward integration. They initiated the steps in this direction during January 2007 and in June 2007 a rolling mill with a capacity of 42000 tonnes was commissioned successfully. The Licensed and the Installed capacity is 42000 tonnes. Commercial production of the Rolling Mills started from July 2007. This forward integration gives the company a niche to the steel market. This also gives the company an entry into the retail market and with proper channels of marketing; they are able to realize a higher margin for their products. Within a very short period after the commercial run of the rolling mill, the company has got ISO certification for the TMT rods during October 2007.

3.4 MANUFACTURING PROCESS PRODUCTS VELA TMT BAR [ 8, 10, 12, 16 , 20, 25, 32 mm] with Fe 415 grade VELA 500 [ 8, 10, 12, 16 , 20, 25, 32 mm ] Fe 500 grade VELA PLAIN ROUNDS VELA ANGLES VELA SQUARE VELA FLATS VELA CHANNELS

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DESCRIPTION OF THE MANUFACTURING PROCESS FOR MS INGOTS: The raw material required for the manufacture of MS INGOTS is Iron Scrap of 75-80 tons per day, Sponge iron at 10 tons per dayand Electric Power is required for melting.

The iron scrap is stored in the scrap yard inside the factory and consumables and stores in the storeroom. The required quantities of iron scrap, metals and sponge iron are charged into the furnace with the help of magnetic cranes. The furnaces are medium frequency essentially consisting of a power source, a coil, refractory lining, housing for coil in the lining and crucible.

The process consists of charging the furnace with scrap and then

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inducing a much heavier secondary current in the charge, which result in heating the metal charge by resistance. Any slag formed on the top of the surface of the molten metal is periodically removed out.

The top of the furnaces are provided with MS hood with ducting and connected to induce draft fan to remove any small quantities of gases produced during the melting and sent to scrubbing system. Since these are electric furnaces, the fumes generation from them is very less.

When the required temperature is attained (1100 Degree Celsius) the furnace is titled with the help of a hydraulic system and the molten metal is poured in to the cast iron ingot moulds kept prepared in the pouring pit. The furnace has a melting capacity of 6.0 tones per every two hours, taking into consideration the time for patching and sintering. Testing of liquid metal ensures chemical composition of the final products. The INGOTS are then striped out of the moulds with the help of crane, allowed to cool, stacked and them dispatched. The induction furnaces are cooled by circulating water through cooling coils inside the furnace. Fresh water is added in to cooling water sump to compensate the evaporation losses. This water is never thrown out. The power requirement will be 620 - 650 unit per tone of ingots produced. Good green belt in an area of about 4.00 acres is developed in the peripheral and other locations inside the plant premises for arresting propagation of particulate and gaseous discharge from the plant.

The domestic wastewater discharged, which is about 5 cu.m/day. will be collected in a common collection tank and treated in septic tank and soak pits.The solid waste of slag formed during the melting process, which is removed by the workers and disposed off as landfill within the factory
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premises in low lying area. The quantity of slag generated is about 6.0 tonnes/day.

ROLLING MILL PROJECT After the big success in establishing and running the MS INGOT project, the company ventured into establishing the ROLLING MILL, as a measure of forward integration. They initiated the steps in this direction during January 2007 and in June 2007 a rolling mill with a capacity of 42000 tonnes was commissioned successfully. The Licensed and the Installed capacity is 42000 tonnes. Commercial Production of the Rolling Mills started from July 2007. This forward integration gives the company a niche b the steel market. This also gives the company an entry into the retail market and with proper channels of marketing; they arc able to realize a higher margin for their products. Within a very short period after the commercial run of the rolling mill, the company has got ISO certification for the TMT rods during October 2007.

Technology Vela TMT high quality Thermo Mechanically Treated (TMT) bars are manufactured using the most contemporary technology available worldwide and supervised by metallurgists and engineers. Reheating furnace, pre-finishing & finishing mill, continuous shear to cut bars, roughing mill, intermediate mill, besides the most modern TMT facilities.

Our TMT steel bars are made using the 'Quenching & tempering' (Q &T) technology. This technology is introduced by RA TMT

TECHNOLOGY, A contemporary technology, it allows the production of bars to be on par with international standards. Hot rolled from steel billets and subjected to PLC-controlled online thermo-mechanical treatment, the
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bars are made to pass through heat treatment over three successive stages.

1) Quenching In the first stage of 'Quenching', intense water quenching is executed on the periphery while the core stays unchanged, leading to a martensitic surface and austenitic core. The quenching is done using a special water spray system.

2) Tempering Subsequently, the bar leaves the quenching box to undergo a process of'Self Tempering In this stage, heat from the austenitic core flows to the Surface, causing the tempering of die outer martensitic layer into a structure referred to as Tempered Martensite'.The core remains austenitic.

3) Cooling In the final stage of 'Atmospheric Cooling' that takes place on the Cooling Bed, the austenitic core is transformed into ductile ferrite-peariite structure. The end result is a line combination of a strong outer rim (tempered martensite) and a ductile core (ferrite-pearlite), thereby imparting strength as well as ductility.

After the quenching process, the bars are cut to desired sizes with the Shearing machines and transferred to the Cooling Bed wherein they are cooled to get the defined structure. Unlike conventional bars that are subjected to cold twisting.TMT bars have high strength, greater yield & elongation, uniform micro structure, toughness, ductility and weldability. They also bond better with cement concrete mix. Hence they are equipped with the requisite properties to provide strength to Structures for enduring natural hazards.
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Quality At Vela TMT, we believe that quality is not an end-product, it is a continuous process. Which is the watchword in all our operations. Committed to manufacture and sell quality steel products that conform to relevant standards and as per customer's requirements, our goal is to continually endeavour in enhancing the customer-centric activities. Further we are using UTM for the TMT Rods tensile strength, yield strength and elongation.

Features Earthquake Resistant Excellent Weldability & Durability Uniform strength throughout the bar due to PLC Controlled TMT Process Uniform space and depth of lugs maintained by CNC Machine Higher strength with better elongation 10 - 15% cost savings due to improved strength Delivery as per your convenience

Certifications Our efforts to exceed expectations and endorse excellence are reflected in the certifications conferred on us. It is our continuous pursuit to excel that enables us to set standards as well as achieve them.

Certifications IS : 2830 : 1992 1786

Description INGOT Products TMT Bars for Fe 415 & 500 Grade

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ISO 9001 : 2000 14001 OHSAS

Quality Management System Environmental Management System Occupational Health and Safety Assessment Series

Bureau of Indian Standards (BIS) We are the 1st Indian company in the Private Sector to have been bestowed with a rare honour - the 'ISI certification (ISI 14650 for Cast Billets). This certificate was awarded to us in 2004 by the BIS in recognition of the quality of our ingots. Along with the IS 14650, we have also been certified with the IS 2830 for the Cast Billets that go into the manufacture of rods.

A testimonial to our single-minded focus on attaining flawless quality is the 'ISI mark. The entire range of steel rods that we manufacture has been certified with the ISI' mark. Our products comply with not just Indian standards but also international standard codes of practice. The quality parameters for Fe 415, Fe 500 and Fe 550 conform to French & German Standards that are equivalent to IS 1786-2008, and also the international recommendation by CEB. An efficient and experienced team of Quality Control Engineers manning our hi-tech laboratory ensures that no effort is spared in the achievement of these standards.

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CONTACT DETAILS OF SRI VELA SMELTERS PVT. LTD Registered Office SRI VELA SMELTERS PVT. LTD. 76/D valarai Gate, Vellur Road, Trichengode - 637 211. Nammakkal District. Phone : +91 - 4288 - 255227 Mobile : +91 - 98427 56803 E - mail :srivela@gmail.com, info@velasteels.com

Factory Address SRI VELA SMELTERS PVT. LTD. 4/322, 388, Pommakkapalayam, Nallur Kandampalayam, Paramathi Velur, Namakkal Dist. Pincode - 637 203

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