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CHAPTER-1
COMPANY PROFILE
Ferro alloy refers to various alloys of iron with a high proportion of one or more
elements, manganese or silicon for example. It is used in the production of steels and
alloys as a raw material.
The manufacture of Ferro alloys is highly power-intensive and therefore the cost of
power is critical to the competitiveness of the producers. On average, 50 per cent of the
total cost per tonnes of Ferro alloy is accounted for by power.
In the mid-1990s, the industry was hit by excess domestic capacity and a demand
recession made worse by substantial imports of Ferro alloys by steel exporters. The
slump was caused by inadequate indigenous demand and an inability to compete on the
international markets because of high power tariffs.
Despite global meltdown, the Ferro alloys industry has registered a production
growth of 7.20 per cent during fiscal 2009-10, says TS Sundaresan, secretary-general of
IFAPA.
Ferro alloys are considered a part of the core sector under the ministry of steel as
they are crucial intermediates to iron and steel industry. The industry has completed five
decades of manufacturing bulk and noble Ferro alloys. Ferro alloys are used in the
production of steel as de-oxidant and alloying agents. The Ferro alloy capacity in India is
around 3.64 million tones.
Despite the financial meltdown and the market slowdown, the industry produced 2.22
mt of Ferro alloys during 2008-09, a reduction of 5.93 per cent as compared to the
previous year¶s production of 2.36 mt.
The eastern region headed the list in producing manganese alloys (61.42 per cent),
Ferro silicon (71.63 per cent) and chrome alloys (83.39 per cent). Production of noble
Ferro alloys registered a reduction of 7.58 percent during the year.
The industry registered lower exports of Ferro alloys in tonnage as compared to the
previous year. However, earnings of exports have increased by 45.43 per cent over the
previous year. The industry exported 849,291 tonnes (902,542 tonnes) of Ferro alloys
during 2008-09.
Imports of Ferro alloys generally increase every year when the customs duty on
Ferro alloys is reduced. According to export-import data of department of commerce, the
import of Ferro alloys was Rs 15,300 million in 2008-09 when the duty was reduced to 0
percent.
Electrical energy is one of the major inputs in production of Ferro alloys. The high
power tariff and the power cut implemented in Andhra Pradesh and DVC area in West
Bengal are hitting the industry badly. Electricity duty, which varies widely from state to
state, creates additional burden.
The impact of power reforms on Ferro alloy producers is difficult to assess, as the
electricity market still seems to be in a state of flux.
Captive power generation for large scale producers of Ferro alloys may hold the key,
though it is capital intensive. A number of Ferro alloy producers are setting up captive
power plants and it is estimated that 1,000 MW capacities is expected to come up in the
next two years.
Minister of steel has announced that the government will make all Endeavour¶s to see
that the 124 mt steel capacity projected by the year 2011-12 , is realized by way of policy
facilitation and vigorous co-ordination efforts with the concerned state governments and
the central ministries.
During the current year, the three public sector units ² SAIL, RINL and NMDC ²
have planned to invest nearly Rs 13 billion in their on-going capex and modernization
projects.
Despite the global meltdown during the end of 2008 and beginning of 2009, it is
estimated that the industry during fiscal 2009-10 has produced 2.38 mt of Ferro alloys, an
increase of 7.20 percent.
IFAPA is much concerned about the domestic availability of manganese ore for
member units, as Steel Authority of India Ltd and Manganese Ore (India) Ltd, the two
public sector undertakings, have formed a joint venture (JV) company SAIL and MOIL
Ferro Alloys Private Ltd, setting up a one lakh tonnes capacity of manganese alloys plant
in Bhilai.
Similarly, MOIL has signed up a JV agreement with Rashtriya Ispat Nigam Ltd for
setting up manganese alloys plant near Visakhapatnam.
Once these plants come in operation, it is estimated that around 60 per cent of
MOIL¶s manganese ore would be consumed by the SAIL-MOIL Ferro alloy plant,
MOIL-RINL plant and MEL plant. The industry will then have to depend on 100 per cent
imports of manganese ore.
Orissa Mining Corporation Ltd, the lone producer of chrome ore, is unable to meet
the requirements of the units, and the industry has started importing chrome ore lumps for
blending the material with the domestic availability of chrome ore.
The industry has to import low ash low phos metallurgical coke. With the recent
appreciation in dollar, the imports of Ferro alloys may work out cheaper and increase
from other countries at lower prices.
The government, therefore, should increase the import customs duty to 10 per cent
from the existing level of 5 percent. A uniform power tariff should be fixed for all Ferro
alloy units across the states. It should also remove the Ferro manganese slag and bring
down the customs duty to 0 percent on raw materials.
With the steel production to grow in coming years, domestic consumption of Ferro
alloys is expected to increase. India has the potential to be a major player in the global
Ferro alloy industry in the coming years. It needs to acknowledge market factors and
seize opportunity for Ferro alloys and steel.
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Mn Alloys Consumption Trends & Forecast for India
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Raw materials
÷ Raw materials viz. Mn Ore , Cr Ore Quartz, Fluxes are available in India.
÷ However, Indian Mn Ore is predominantly low grade(~45%)
3
Sova Ispat Alloys Ltd. has got accreditation of ISO 9001: 2008 from DNV
!"# $ #$ %
Total Area : 9 Acres
3 Nos Submerged Electric Arc Furnace of total 26 MVA capacities. Furnaces are
lined with high Alumina Fire Bricks with Carbon Paste Electrodes. Power obtained from
The Durgapur Projects Ltd at 11 KV level.
& ': For Ferro Alloy Furnaces : Manganese Ore, Rich Manganese bearing
slag, Dolomite, Quartzite, Fine Coke (dry), Iron Chips and Mill Scale are utilized. Proper
blend is maintained through Micro Processor Batch Weighing System and controlled
through EMR feeders.
The Units are equipped with dust precipitation system with bag filters to maintain the
statutory solid waste PPM level in the effluent gas. Obnoxious gases in the final
discharge is strictly maintained by proper selection/blending of raw materials and correct
smelting process in the furnaces thus ensuring the plant to be eco friendly.
"( )*+)) )*,- : After one and half hours of cooling into the Cast Iron moulds,
the solid metal is stripped off. Broken to pieces as per size & packed in nylon bags
weighing 25 Kg to 50 Kg. The bags are ready for dispatch which are loaded in customer's
trucks and finally weighed in computerized weighing machine.
CHAPTER-2
ORGANIZATION STRUCTURE
&
FUNCTIONAL DEPARTMENTS
,
ED/GM
(Project & Production)
DGM (Production)
Shift In-Charge
# .,$ #.
In this industry a wide variety of FeMn (Ferro Manganese) & SiMn (Silicon
Manganese) are prepared in the S.E.A.F (Submerged Electric Arc Furnace) which is
further used in the manufacture of Steel.
.//&0) 1 ' --
High Carbon FeMn is produced industrially in electric arc furnaces, where the energy
is supplied by electric energy, or in blast furnaces, where the energy is supplied by
carbon combustion. The optimal properties of the raw materials are almost the same, as
are the chemical reactions. The following only discusses FeMn production in the electric
arc furnace. The raw materials for the production of HC FeMn may be divided in the
following groups:
÷ ' -- which will mainly be Mn ores. There are also some by-products,
containing large amounts of manganese oxides that are circulated into the furnace.
÷ `1 --23It can be obtained mainly from coke oven plant. The carbon
sources could also be coal. This is mostly a matter of price and cost.
÷ 4 ) - are added to obtain certain slag characteristics, such as a specific
viscosity. Dolomite or limestone is frequently used to increase the chemical
activity of MnO to obtain a higher Mn yield. However, this will increase the total
amount of slag which must be taken into consideration.
As the raw materials move down in the furnace they will gradually be heated in a
reducing atmosphere.
.//&"' --
SiMn is produced is industrially produced in electric arc furnace where the energy is
supplied by carbon combustion to a low content as compared to the above said process.
The raw materials are the same as above which may further be divided in the following
groups:
÷ ' -- mainly used as Mn ores are circulated into the furnace.
÷ !4) - -,- used to obtain better fluidity of slag. This will
increase the amount of slag content which will be which being lighter will be
drained out through the tap hole.
"5%5!56"1)%! 7
Ferro Alloys furnaces are powerful electro thermal device capable of producing high heat
concentration which is generated by resistance of the charge initiate chemical reactions
for smelting of ore bodies in the submerged arc furnace in presence of carbonaceous and
reductants.
All the manganese alloys such as Ferro manganese & Silico manganese are being
produced by them in a submerged electric arc furnace with low voltage & high current
operation from a mixture of manganese ore, dolomite, quartz, high manganese slags &
other reductants with the help of raw material handling system. In the furnace, charge is
preheated, semi fuse and fusing stage, melting of alloy and slag and family trapping of
alloy and slags.
The manganese alloys are broken into pieces and sized before dispatched to the
customers. The slag is dumped at the slag yard. The slag of Ferro manganese is used in
producing silico manganese and therefore it is heaped into proper place after breaking it
into proper sizes.
Picture: - Control Room Picture: - Tapping
81#-
SIAL having well equipped laboratories for sampling & chemical analysis of raw
materials as well as finished products, raw water, cooling water and softener. The
laboratory tests are done according to quality content of the raw materials however;
sometimes it varies according to the customer¶s specifications. The slag obtained from
the furnace is separated from the metal and afterwards a slight amount of slag and metal
are taken to test the exact percentage of the raw materials. But the slag test is more
important than the metal. The percentages of the raw materials are as follows:
"' '
'23 '23
Mn ± (60-65) % Mn ± (70-75) %
Si ± (15-16) % Si ± 1.5% (Max)
C ± 2 % (Max.) C ± (6-8) %
S ± 0.05 % (Max.) S ± 0.05 % (Max.)
P ± 0.30 % (Max) P ± 0.35 % (Max)
")23 ")23
MnO 9(10-14) % MnO 9(30-35) %
Sio2 ± (35-40) % Sio2 ± 30 %
CaO ± (12-14) % CaO ± (11-12) %
MgO ± (6-8) % MgO ± (6-8) %
Al2O3 ± (18-20) % Al2O3 ± (11-14) %
FeO ± 1% MAX FeO ± 1% MAX
!- 23Sio2 Coal or COKE moisture
Al2O3 V.M
Fe2O3 Ash
CaO F.C
MgO
%: -2 Laboratory is equipped with:
÷ Different types of sieves.
÷ Hot air oven
÷ Combustion furnace with transformer
÷ Stronhlein apparatus for carbon determination
÷ Chemical balance
÷ Distillation apparatus along with distilled water tank
÷ Two nos. of muffle furnaces where 1100ºC temperature can be attained.
÷ Hot plate and Platinum crucible with lid.
.
w-2
Plant produces strictly as per the standards set by Bureau of Indian Standards.
Sova Ispat Alloys Ltd. has got accreditation of ISO 9001: 2008 from DNV.
Strict adherence to selection of quality raw materials, process parameters, timely
delivery, after sales service and customer satisfaction are the buzz words in achieving
quality in all the products of Sova Ispat Alloys Ltd.
After automatic
Mn or Si ore weighing & Batching
S.E.A.F Electricity
Remelt
Slag Metal
igging
Granulation
& Disposal
Weighing
Metal Sand + Slag
Sizing
Packing
Ready to sale
0 --,
"0 ,
Director
Personnel
Manager
Security Personnel
Officer Officer
SIAL¶s Human Resources philosophy is based on dignity of work, fostering a culture
of learning, meritocracy sans bias of any kind and commitment to highest standard of
safety at the workplace.
;`2
Driving the growth of the SIAL are 250 and more committed employees. The
diversity of location, language and culture blends seamlessly into a common work ethos,
which hinges on fostering excellence, recognizing and rewarding entrepreneurship. SIAL
believes in empowerment, delegation and calculated risk taking ongoing endeavor is to
create an organizational ambience where talent can bloom. To do so, they strive to make
the workplace a source of creativity, innovation and one of that makes work meaningful.
%` 2
The Human Resources Department handles employee¶s communication. An
employee may have certain question, queries, complaints, suggestions and ideas that they
would like to share, this is possible through employee-employer communication kinship,
offered in this company. Communication is given a high priority and this is so because
they consider it is necessary to remove barriers the intra-organization flow of
information.
. ,
2
An employee of the company has freedom to go through and voice their perceptions,
suggestions and any matter that are relevant to them and their job. Employee active
participation is needed and appreciated to ensure that an open and free exchange of
communication exists.
"/-2
Supervisor is the first source of information, advice, help, encouragement and
training to any employee in the organization. He is the person who is directly responsible
for assigning, directing and reviewing of work. An employee is free to air their views
about performance and suggestions to employee supervisor for a suitable response.
%3% 2
SIAL believes that people are principal assets. They are the one who create
everything that¶s valuable to the company. All they need is the platform to do so. SIAL
believes in taking their people along them as they forge ahead. Care and concern for
fellow-employees are evident everywhere. They take care of the quality of work
delivered as well as the environment in which it is executed.
,- 2
The company believes in maintaining a very high level of organization discipline by
synergizing personal discipline with technology discipline.
! 2
SIAL has staff dormitory in his factory premises, but family is not permissible.
Where all the facilities (including foods) are been provided to the employees.
! 2
Being at work regularly and on time is an important part of the overall job
performance. If illness or an unexpected problem prevents an employee from coming to
work, then they have to contact the supervisor at the earliest possible, on the first day of
absence. For extended illness, a doctor¶s certificate must be provided.
0-2
Holidays are given on the calendar year system, which is from April to March.
Employees are eligible to avail 10 paid holidays in a year. The list of holidays for the
year is released by the end of March every year.
8/2
ö Casual Leave (CL)
ö Sick Leave (SL)
ö Privilege Leave (PL)
ö Maternity Leave (ML)
2
The methods used by SIAL to recruit people are various placement consultancies,
news papers advertising & internal sources.
1 2
Any new recruit who joins the company will be put on a probation period for 6
months. The probation period is to facilitate assessment of the new entrant¶s competence
and suitability. The period of probation would be mentioned in the appointment letter.
-) 2
An employee ceases to be in employment once his submitted resignation has been
accepted and he is relieved from the company services. An employee on probation may
resign from the company by giving sufficient notice of 24 hours while a confirmed
employee will have to give a notice period of one month. He will be relieved on
completion of notice period as per letter of his appointment or standing order of the
company as applicable. The resignation letter should be submitted to the Personnel
Manager through the functional heads.
!-2
People come first in the new business paradigm. The success of an organization
essentially depends upon the effectively harnessing and utilization of this resource. It is
imperative of an organization to constantly nurture people and have their capabilities for
optimal performance.
a) Preference will be given for internal source by tapping the potentials of the
employees possessing multiple skills who can be redeployed.
b) In case of non-redeployment of the existing employees, external source will be
adopted either by approaching placement consultants, advertisement etc. On receipts
of application through external source, through screening will be done at the
department. The short listed candidates will be called & interviewed by a committee
consisting of respective HOD/section Heads & one representative from HR
department. The selection will be made based on the overall performance of the
candidate and as per the company¶s requirement.
The recommended candidates for selection by the committee will be put through
final interview with JMD & CEO offer letters will be issued subject to their medical
fitness duly certified by their medical superintendent.
The new employees will be issued with a joining circular welcoming him to the
company along with an advice to attend half day safety training programmed.
Presently two types of registers are being maintained.
A) Offer issued register B) Duty joining register
,
" ,
Director
Manager
(Finance) [CA]
Jr. Manager
(Finance)
Finance means acquisitions of the fund and proper utilization and allocation of funds
in the proper way. Finance plays a pivotal role in the development of any business. Thus
development of any business is the major and important function of the management. The
following are the different function of the finance department:
"-! -" 2
The main functions of this section are preparation of sales account. When
customer approaches to marketing department for product, marketing department will
discuss with the sales account section about the price. Here the sales are made both in
advanced and on credit. To prepare sales account, following reports are to be prepared:
Order acceptance, price approval, purchase order, dispatch advice, invoice etc.
`-" 2
Cost sheet are prepared as accordingly production process. The operation cost sheet
is prepared per unit cost in which quantity, price, qualities are stated. It will reveal cost of
production and it also helps in preparing the cost sheet for the future i.e. for budgeting.
! )
-
< 2
The financial statements are prepared under the historical cost convention, on the
basis of a going concern and as per the applicable accounting standards. The company
follows the mercantile system of accounting and recognizes income and expenditure on
accrual basis expert the liability for customs duty in respect of the capital goods lying in
the bonded premises and those with significant uncertainties.
4!--- , 2
a) Fixed assets are stated at cost of acquisition or construction less depreciation.
b) Depreciation on the assets is prompted on the straight-line method at the rates and
in the manner specified in the schedule XIV to the company act, 1956.
#42
Provision for the current taxes is made on the basis of the estimated taxable income
for the current accounting year in accordance with the income tax act, 1961. The deferred
tax for timing differences between the book and tax profits for the year is accounted for,
using the tax rates and laws that have been substantively enacted as in the balance sheet
date. Deferred tax assets arising from timing differences are recognized to the extent
there is reasonable certainty that those would be realized in the future.
` ) 1-2
Liabilities which are material and whose future outcomes cannot be ascertained
with reasonable certainly are treated as contingent and disclosed in the notes to the
accounts.
'; ),
"'; ),
Director
Jr. Manager
Sr. Store
(Marketing & Purchase Officer
Assistant
Despatch)
Supervisor
(M & D)
'; )
"!82
Marketing planning is formulated mainly by the top level management people and
senior manager follows the decision regarding planning.
In SIAL before marketing planning the top level management makes a business
plan by considering the annual demand and production capacity and then year target plan
and monthly plan.
.1>/'; ) 2
Objective are: -
; To achieve set standard
; To enjoy profits
; To satisfy customers as it is buyer market
Senior Director (Marketing) directly controls the marketing network of SIAL. The
company has got systematic documentation procedure to control the dispatch activity.
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.
./----
Italy, Brazil, Australia, France, Chili, China, Japan, South Korea, Singapore, Bangladesh
,- -;2
'; )'4"!8
;
-")-23
Because of high demand in the present Market, Plant is producing High Carbon Ferro and
Silicon Manganese & Low Carbon Ferro Silicon.
Size varies from 25 mm to 125 mm. but customized and economic size also can be
supplied.
After the sales the services provided by the SIAL are pretty good and it may be either
major customer or small customer.
;
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i Payment Period: - SIAL is allowing a period of 30 days as payment period to
its customers.
i Credit Term: - SIAL has certain credit terms like letter of credit and payment
of Rs. 100 towards the LOC fee etc.
; ")-23
; ")-23
i Sales Force: - The sales force people are working tremendously collecting
feedback from its customers. Encouraging customers to buy its products,
there people are in the branch officers only and not from the site.
CHAPTER-3
SWOT ANALYSIS, MISSION,
VISION, GOALS & OBJECTIVES
" .#! --
SWOT analysis is a tool for auditing an organization and its environment. It is the first
stage of planning and helps marketers to focus on key issues. stands for
- ) -, &; ---, - and -.
"# %<#0"23
1. SIAL has good reputation in market. This is the result of experience of around 10
years in the alloys industry.
2. Production Quality is the strength of the SIAL.
3. Enjoys strong technical R&D capabilities.
4. SIAL has good marketing mix, which helps to market their product easily.
5. Plant location is another advantage for SIAL.
ü%!@%""%"23
1. There is lack of promotional activities, not using latest promotional media such as
online promotion etc.
2. Job satisfaction is another Weakness at SIAL.
3. Infrastructural development is not so good.
4. Problem with efficient warehousing and out bound transportation.
.
. #$#%"23
1. Located in Durgapur-Burdwan region, a good industry belt.
2. Easy access to the major parts of Kolkata, Haldia and Orissa.
3. Recent growth of the alloys industries in Indian market.
#0 %!#"23
1. Improper policy of Central Government of ore (kahnija sampad) distribution.
2. Insufficient power supply of West-Bengal Govt.
3. Tough competition from the local players.
4. Price war may result due to close competition and price being the main constraint
in alloys marketing.
=".2
Be one of the market leading providers of Ferro alloy and growth by creating value for
each of our Customer. By constant research, innovation and development bring the better
product for the customer. We will accomplish our Vision through our commitment to
strategic growth, outstanding service, and environmental care.
'"".2
Our Mission is to utilize the available raw material at optimum efficiency by innovation
and technology. Delivering the best product without disturbing the environment.
Maximum utilization of our byproducts and industrial waste.
<.!8"2
÷ Profit maximization.
÷ Creating new products using byproducts of industry.
÷ To set the benchmarks for others to follow in Safety & Environmental Care.
÷ Expanding Product Horizon.
.+A%`#=%"2
SIAL has defined its objectives for succeeding in its mission as follows:
CHAPTER-4
FINDINGS, SUGGESTION
AND CONCLUSIONS
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i ³Prevention is better than cure´, we know this, but in real life we forget most of
the time. In alloys industry safety is the first thing for the employees and SIAL
has to prevent their employee¶s life through better safety measure.
` -
This training program with SIAL deal with the study of organization¶s functions of
the entire department, situated at Durgapur, West-Bengal. This program helped me to
know the industrial environment it gave me real working experience. It was a great
experience in the company. According to my experience it is a well built organization as
a small scale industry with great infrastructures, better facilities, and well organized Eco-
friendly environment with good safety measure provided for the workers.
SIAL has always been showing its hospitality to all the students, visitors, employee etc.
their key personnel treated me as their colleague and provided with all the necessary
information that helped me a lot to complete this project successfully.
Finally I would like to conclude that it was a great experience in the company with a lot
of learning experience.
CHAPTER-5
BIBLIOGRAPHY
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