Kirloskar PROJECT FILE 2012

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An Organizational Study At Kirloskar Ferrous

CONTENTS

CHAPTER NO TITLE PAGE NO.1. INTRODUCTION 2-13

1.1 GENERAL INTRODUCTION1.2 OBJECTIVE OF THE STUDY1.3 LIMITATIONS OF THE STUDY1.4 INDUSTRY PROFILE 1.4(A) BACKGROUND/ HISTORY 1.4(B) CURRENT PRESENT STATUS OF THE COMPANY 1.4(C) GROWTH & DEVELOPMENT OF THE COMPANY 1.4(D) FUTURE OF THE INDUSTRIES

2. COMPANY PROFILE 14-412.1 BACKGROUND/ HISTORY OF THE COMPANY2.2 AREA OF THE COMPANY2.3 VISION, MISSION, CORE VALUUES & OBJECTIVES OF THE CIMPANY2.4 PRODUCT PROFILE

2.5 ORGANIZATION STRUCTURE2.6 BOARD OF MANAGEMENT

3. FUNCTIONAL DEPARTMENTS 43-674. POLICIES OF THE COMPANY 69-74

ACHIEVEMENTS/ EVENTS5. SWOT ANALYSIS 76-80

FINDINGSSUGGESTIONSCONCLUSIONBIBLIOGRAPHYANNEXURE

REGIONAL INSTITUTE OF CO-OPERATIVE MGMT, BANGALORE

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CHAPTER: 01INTRODUCTION

1.1 GENERAL INTRODUCTION


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We are a 600 Million US Dollars engineering conglomerate driving critical industries. We are century old pioneers in our areas of specialization like power, construction and mining, agriculture, industry and transport, oil and gas and environment protection with a range of world-class industrial products and turnkey services.

We are made up of 8 major group companies, each led by the best engineering and managerial talent in India. In addition to engineering, we have interests in civic utility systems and in Information Technology and communication.

Our multi-unit, multi-product, multi-location conglomerate is built on the plinths of Experience, Expertise, Quality, Innovation and Values in the business. Our best play is successful work and creation of a new industrial order where we can provide tailor made solutions to the customers. At Kirloskar, listening to the customer and his needs is a tradition as old as the group itself. For it are they who drive us further, making us reach higher, and engineer better solutions. In the customer's often unspoken wish for better implements lays the seed for a new invention, a path-breaking industrial concept.

1.2 OBJECTIVE OF THE STUDY


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To understand the activities of organization Kirloskar

Ferrous Industrial Limited.

To examine each and every department and its

functioning in the organization.

To analyze the performance of the company.

To study the SWOT analysis.

1.3 LIMITATIONS OF THE STUDY

Time allotted for project work was short hence it

was not study was based on more of secondary

data that is available in the form of reports and

documents.

The study was carried out in only one of the

divisions of the Kirloskar and with limited

knowledge.

Head office was undertaking all the activity of

Kirloskar Ferrous Industries Limited.

1.4 INDUSTRY PROFILE


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1.4(A) BACK GROUND/ HISTORY

The steel industry is experiencing one of the longest upswing periods for many years. Since the beginning of 1987, steel production has been riding for almost 29 months, with 1988 bringing an increase of Western world output to 488 million metric tons of crude steel, or 8% more than in 1987. Demand from neighboring China the words first biggest steel maker and users also becoming all the economic growths and country builds stadium for the 2008 Olympics in Beijing.

These favorable prospects raise hopes that steel makers are entering into a period of greater stability. It would seem as if the painful economic adjustment process, which has been lasting for many years, is nearing completion, and that the adoptions of steel capacities, technologies and management attitudes to the changed patterns of economics growth are finally starting to bear fruit.

Government policies and the international monetary system with pegged but adjustable rates and U.S. dollar as a reserve currency has favored this rapid growth. This period is commonly called the “post –war reconstruction period.” The intensity of steel’s


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economic growth was rising by a vast rate between 1950-60. In Western Europe, steel jumped by 30%, in Japan by 58% and in Brazil by 41%. The effect on steel consumption increased by an average of 5.2% a year between 1950 & 1960. The industrialized countries expanded their steel use by 4.8% per annum. The developing nations did so by as much as 8.9%.

Between 1960 and 1970, Western World steel consumption grew by 5.7% a year, with the industrialized countries expanding their steel usage by 5.6% a year and the developing countries by as much 6.5 % a year.

The steel industry has harvested to the bitter fruit of this excessive optimism in the firm of overextended capacities throughout the world. Steel is not without lots of company in that regard. Another important influence on steel intensity is the replacement of steel by other materials. Calculating that portion of the reduction in the specific consumption of the steel that is due to the use of other materials is extremely difficult.

However, estimates made by the International Iron and steel Institute would seem to indicate that for all of the Western industrialized countries the rate of


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substitution of materials such as plastics, aluminum, glass and timber for steel is presently standing at between 2 and 5 percent of steel consumption.

Earlier to the Government liberalization and de–licensing policies in 1991–92, there was mainly two Pig Iron producers in the Indian market; the two Pig Iron producers were TISCO and SAIL. They used to produce basic grade Pig Iron which contains less silicon content when conversion to foundry grade Pig Iron. So when this is to be used by the foundries they have and Ferro silicon for the conversion to foundry grade also the availability quantity of Pig Iron to the foundries was very much limited because only of ISCO and SAIL were looking after all the foundries in India.

After the liberalization and de-licensing policies of government and private sectors showed keen interest in the Pig Iron manufacturing units that to in the production of foundry grade Pig Iron, TATA group in collaboration with Korf Brazil started supplying mini blast furnace of 250 cubic meters. When blast furnaces were available, many private sectors started. Producing Pig Iron among them, Sese, Goa, and Usha Ispat, Sisco (Southern Iron and Steel Co. ltd). Uni Metal, Meco, Lanco, Sathavana, Kirloskar are main. These all Pig Iron producers started producing mainly foundry grade Pig Iron.


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1.4(B) CURRENT/ PRESENT STATUS OF THE COMPANY

India is gifted with large quantity of Iron ore with a high ferrous (Fe) content, which is the crucial raw material for producing the steel. Hence India is on of the largest producers of steel in the world. With the liberalization, globalization of economy in the process. There is a significant scope for economic development, which means there will be focus on the infrastructure. This will lead to considerable demand for steel. As its main applications are in the construction, engineering and automobile sector, which are key elements in building the infrastructure steel in universal intermediate and has very strong forward and backward linkages hence steel industry has become one of he core sector of the economy.

Though India is one of the largest steel producers, it has a very low per capita consumption of steel in comparison with other developing and developed countries. As demand for steel is on the rise we can expect good rise in the consumption.

India is fortunate in having intensive iron ore deposits with reserves estimated at10.3 billion which is more than 1/4th of the world’s reserves. Further the average iron ore content on India ore is above 60% in


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India, the iron or reserve are mainly found in the states Orissa, Karnataka, Bihar, Madhya Pradesh, GAO, Andhra Pradesh, Rajasthan and some parts of western Maharashtra. When we think of the industry steel, the first thing that comes into is Pig Iron. This is because of its name. To put into simple words, when molten metal from the blast furnace is paired into moulds and solidifies it assumes a shape which resemble the back of a Pig. Hence the name “Pig Iron”.

1.4(C) GROWTH & DEVELOPMENT OF THE COMPANY

India has traditionally been one of the major producers of steel in the world. Till the 1990s the steel industry of India was regulated and controlled by government policies.

After the economic reforms of the early 1990s, the Indian steel industry has evolved significantly to conform to global standards.

India has set a vision to be an economically developed nation by 2020. The steel industry is expected to play a major role in India’s economic development in the coming years. The steel industry of India has a very high growth potential and is expected to register significant growth in the coming decades. India is expected to emerge as a strong force in the global steel market in coming years.


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The major aspects that are expected to play a significant role in the growth of the steel industry in India are-

Construction Housing

Ground transportation

Hi-tech engineering industries such as power generation, petrochemicals, fertilizers

The current scenario of the Indian steel industry that there is huge growth potential in this industry. The per capita-consumption of steel in India, according to latest available estimates, is only 29 kg. This is much less compared to the global average of 1-10 kg. The per capita consumption level of developed nations like the United States of America is 400kg. In this respect, one of the major initiatives that need to be taken is to focus on increasing the consumption of steel in the rural areas of India. The potential for the growth of consumption of steel in the steel of India for purposes like rural housing, rural infrastructure, etc is high which to be tapped erriciently.

In order to realize the growth potential in the steel industry of India, it is essential to ensure that the industry can remain competitive. One of the major aspects in this regard is the availability of inputs.


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Shortage of inputs like coke has led to increase in costs earlier. Moreover proper infrastructure facilities like transport infrastructure, power etc are of prime importance in maintaining the competitiveness of the industry.

Most developed countries have regulations that are aimed to protect the domestic steel industry. The industry steel industry has comparatively much lesser protection through regulations. Proper regulatory measures should be adopted by the government to protect the domestic steel industry.

1.4(D) FUTURE OF THE INDUSTRY

There are certain challenges before the steel industry of India in the recent times, India has been one of the major producers of steel in the world and has also been attracting a lot foreign direct investment.

A few issues would need to be attended to if India wants to be counted as one of the major and most economic producers of steel. The three areas that need to be improved upon in the view of the exports are the infrastructure, ability to draw the top names in steel, and wealth creation issues.

The condition of the infrastructural facilities of the steel industry in India is not at all conductive to a


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sustainable growth and development of the steel industry of the India.

The methods that are adopted for the creation of wealth in the Indian steel industry are also supported to act hindrances to the growth and development of the Indian steel industry. The Indian steel industry has also not been able to draw the best professionals in the steel industry and that has been a major draw back of the industry.

The experts are also of the opinion that not enough policies or measures have been adopted to amend the situation i case of the infrastructural facilities available in the steel sector. Even through India is capable of producing steel at a good rate and also increase the volume of production there is not enough land available to support such activates. One of the major reasons of such problems is the consistently increasing population of India.

The design institutions in India have not been successful at recruiting the best of engineers and metallurgists in India. This has affected the technological aspect of the Indian steel industry. The exports are of the opinion that this issue has to be countered in order to reduce the dependence on the overseas technological assistance. The steps are taken by Tata Steel are instructive in such a context. The company has been


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increasing public awareness about the steel industry through books and educational sessions at the Indian Institute of Technology at Kharagpur.

CHAPTER: 02COMPANY PROFILE


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COMPANY PROFILE

COMPANY DETAILS:

Year of establishment: 1994Sales turnover 2005-06: INR 4,827 Million, USD 105 MillionNo. of employees: 940(785+155)

BUSINESS AREA:

Pig Iron

PRODUCT RANGE: Pig Iron: Foundry Grade, S.G. Iron Grade & Basic Grade

CHAIRMAN & MANAGING DIRECTORMr. Atul C. Kirloskar - Chairman Mr. R. V. Gumaste - Managing Director

MANUFACTURING UNIT & ADDRESS OF UNIT:Kirloskar Ferrous Industries Ltd., Hospet. P.O. Hitnal 583 234 District - Koppal, Karnataka, INDIATel.: +91 8539 286711, 286712, 286715, 286715, 286762,


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286767Fax: +91 8539 286706, 286714E-mail: [email protected]

REGISTERED OFFICE ADDRESS: Laxmanrao Kirloskar Road, Pune 411 003, Maharashtra, INDIATel.: +91(20)25810341, Fax: +91(20)25813208, 25810209

2.1 BACKGROUND/ HISTORY OF THE COMPANY:

The Kirloskar group origins were small but significant. In the year 1903, Sri, Laxmanrao Kashinath Kirloskar opened a bicycle shop in the state Karnataka in south

India. From this modest venture has grown the Kirloskar group of more than 15 manufacturing company with an annual turnover exceeding 116 millions pounds string and engineering field in India. A Kirloskar product includes pumps, farm machineries, machine tools, diesel engines, electrical machinery a wide variety forgings electric switchgears and tractors. The vast Kirloskar group is the result of industrial Vision of Shri. L.K.Kirloskar, many overseas factories are Located in the West Germany Philippines, Malaysia and Kenya.THE FIRST KIRLOSKAR GROUP COMPANY:

Kirloskar Brothers Limited (KBL) - the first Kirloskar venture at Kirloskarvadi was to become the base for all of the Kirloskar Group's


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subsequent enterprises. It began as the only Indian company with its own standard products - the fodder cutter and the iron plough, which competed with the British products.

KBL also manufactured groundnut shellers, sugarcane crushers and pumps, which were to usher in a new economic order in the Indian industry. To power these machines, diesel engines, coal gas generators and electric motors were developed at Kirloskarvadi.

In a display of great versatility, KBL then shifted its focus to fluid handling and control. As India's largest manufacturer of pumps and valves, and also the group's flagship company, KBL lends its strength and expertise to every new venture of the Kirloskar Group.

PLAYING A PART IN THE WAR:

The intensified boycott of the British goods and the approaching World War threatened to stop imports of machine tools into India. The Kirloskar, with characteristic foresight began making machine tools. This paradigm shift of sorts, from farm implements to machine tools, created a new company - The Mysore Kirloskar Limited. This company, situated in Harihar, benefited greatly from the patronage of yet another Raja - the Maharaja of Mysore. In the first month of production, Mysore Kirloskar sold all of manufactured seven lathes.


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The new generation -Innovation, creation, traditionFrom colonialism to independence:

An important change, for the country, and for one of its premier industrial houses, the Kirloskar Group. The altered political climate of the 1940s heralded the end of the princely patronage for enterprise. The policy shifts and changes in authority were the order of the day. This marked a turning point for the group.

Shantanurao Kirloskar, the eldest son of the founder travelled to Pune to initiate a new aspect of the group's activities - diesel engines. His experience of trying to secure the land for his factory in Pune was quite different from his father's in Kirloskarvadi. There was no benevolent ruler here to bestow acres gratis. Shantanurao had to face the tangle of red tape and public resistance to acquisition of land for industrial purposes.

Finally, after arguing that factories have a longer life than human beings Shantanurao Kirloskar won a place for Kirloskar Oil Engines Ltd. (KOEL), twelve months after signing an agreement of collaboration with Associated British Oil Engines Export Ltd. of UK.


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This collaboration, incidentally, was the first of its kind between an Indian and a foreign company, and signified a bridging of the technological gap between east and west.

The KOEL factory was incorporated in 1946, and soon after that gave India her first vertical high-speed engine. Brijlal Sarda, who reported its satisfactory running for over 4 decades, bought this first engine!

TO ELECTRIC MOTORS & PNEUMATICS:

The making of the electrical motor. This was the second of Laxmanrao Kirloskar's long cherished dreams, the first being the making of an engine. This task was brought to completion by Ravi Kirloskar, his youngest son, in 1946. Way back then, the authorities whom Ravi Kirloskar had approached for land were astonished by the request for 25 acres. Today, Kirloskar Electric Company Limited (KECL) has four plants occupying several times that acreage.

The setting up of KECL and other Kirloskar companies saw a major role being played by Nanasaheb Gurjar, a lawyer who made industry his sole area of operation. Though the development of air compressors was an established activity at Kirloskarvadi, a full-fledged plant to manufacture the same was


KECL's logo in the 40's

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set up at Pune in 1958, under the eventual management of Shreekant Kirloskar, Shantanurao's youngest son. In collaboration with Broom and Wade of England, Kirloskar Pneumatic Company Limited began the manufacture of air compressors and pneumatic tools.

THE KIRLOSKAR GROUP OF COMPANIES:

1) Kirloskar Brothers Limited (KBL):It becomes the only India Company with its own standard products the folder cutter and the iron plough, which competed with the British product. Established in year 1988 and incorporated in 1920 is the acknowledge. Leader in fluid handling and largest manufacturing and exporter of pumps in India. It has acquired SPP, VK in Nov 2003 consisting at three plants in UK, USA and Africa manufacturing fire fighting pumps, water and sewage pumps.

2) Kirloskar Oil Engines Ltd. (KOEL):It is incorporated in 1946. It has six plants with 2828 employees, manufacturing Diesel engines, Generating sets, Engine bearing and values.

3) Kirloskar Pneumatic Company Limited (KPCL):It is incorporated in 1957, KPCL is India’s leading name in manufacturing of reciprocating compressors, screw and centrifugal compressors, tractor gears, gearboxes, refrigeration projects.

4) Kirloskar Ferrous Industries Limited (KFIL):


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It was incorporated in the year 1992 with 2 plants manufacturing Grey iron casting and Pig iron with 1259 employees.

5) Kirloskar Copeland Limited (KPC):It established in 1966 and incorporated in 1993.

6) Kirloskar Ebara Pumps Limited (KEPL):It was established on 13th Jan 1988 as a joint venture promoted by KBL and EC with a mission to equipments like process pumps, steam engines, fans etc. Required for critical application in Hydrocarbon Processing industries and for power projects.

7) Kirloskar Chillers Pvt. Ltd.It was incorporated in the year 1996. It has a single plant producing centrifugal chillers, screw chillers, reciprocating chillers

8) Kirloskar Middle East F2E:Established in 1997. Kirloskar group of companies has been exporting their products to various in Middle East Africa and other markets in South East Asia for more than 3 decades. KMEF caters to its markets and customers through network of more than 50 outlets.


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Kirloskar Ferrous Industries Limited

Establishment Year 1991Incorporation Year 1994No. Of Employees 1207(including 201 trainees)

Chairman Atul C KirloskarCompany Secretary C S PanickerRegistered Office 13 Laxmanrao Kirloskar Road, Khadki, , , ,

Pune - 411003, MaharashtraURL http://kirloskarapps.kirloskar.com

Auditors P G BhagwatListing BSE , NSE

BSE Code 500245NSE Symbol KIRLOSFERRBSE Group B

Index Constituent of BSE SmallCapFace Value (Unit Rs.

INR)5.00

ISIN INE884B01025Registrar Details Link Intime India Pvt Ltd - Pune, Akshay

Complex, Block No. 202, 2nd Floor, Off. - Dhole Patil Road, Near Ganesh Temple, Pune

- 411001, Maharashtra


http://kirloskarapps.kirloskar.com/

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2.2 AREA/ LOCATION OF KIRLOSKAR FERROUS INDUSTRIES

LIMITED (KFIL):

Kirloskar Ferrous Limited Co. was incorporated on 10th

September 1991 as a Public Limited. Kirloskar Oil Engines Ltd. and Shivaji Works Ltd promote the company. The main objective of the company is to manufacture Pig Iron and ferrous casting. The company commenced production in 1994 and up an additional blast furnace in 1995.

Kirloskar Ferrous Industries Limited is located at Bevinahalli of Koppal district. Spread over 200 acres of spacious land with lush greenery around. Kirloskar Ferrous Industry Limited has 2 mini blast furnaces each of 250 M3 working volume, technology and design of TATA-KORF limited in technical collaboration with Korf technology Brazil for extracting pure iron ore.

Each furnace producing 1, 20,000 tones of Pig Iron metal/year. The plant manufactures foundry grade Pig Iron suitable for automobile castings.

Raw materials are produced from Sandur and Donimalai sector near Hospet, abundance of rich iron deposits are available in these areas. Fluxes such as limestone, dolomite, quartzite and manganese are available in the nearby surrounding area. Both iron ore and fluxes are


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easily accessible by road. Coke is imported from China or Japan which is unloaded at GAO / Chennai / Mumbai port and brought to the work site by rail or road. Coke is biggest raw material to the company and it accounts for almost 80% of raw material costs. Kirloskar Ferrous Industries Limited is the first pig iron manufacturer in India with QS 9000 certification.

Company located on the banks of the Tungabhadra reservoir at Hospet near to the rich iron ore belt of the Hospet- Bellary range, with the Kirloskar philosophy of adopting cutting –edge technology from around the world adapting it to Indian conditions, is today committed to delivering casting of international quality in order to ensure the highest levels of customer satisfaction.

NATURE OF BUSINESS CARRIED:

1. Casting and Ploughs

2. Compressors pumps, electric Power

3. Machine tools

4. Engines and components, diesel engines

5. Hotels

6. Advertising

7. Financial Services

TIME LINE OF KFIL:


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1994 Year of inception

1994 Commercial production of Pig Iron from Mini Blast Furnace I

1995 Commercial production from Mini Blast Furnace II

1995 ISO 9002 certification

2001 QS 9000 certification

2002 ISO 14000 certification


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2.3 VISION STATEMENT, MISSION STATEMENT,

CORE VALUES, OBJECTIVES

VISION STATEMENT Business for us is the best service, customer care and a lifelong relationship. “To be a world class product leader through the STATE OF THE ART manufacturing technologies and process.”

Where are we headed? We believe in synergy and its limitless power of

unifying. It is not limited to our group. It extends to the realms of customer/collaborator relations, investor interactions and into market trends analyses and technological advances. It is the only way we ensure that when an endeavor is made by several different elements, the result is of a far higher quality than what could have been achieved by each element acting alone.

How do we plan to reach there? For the Kirloskar Group, engineering excellence is not an end, but a journey. An array of business solutions stand testimony to the fact, that good business values, pillared by expertise can work wonders. Solutions, which are crafted from a solid base of developing and manufacturing, generate reliable products and superior service. Through which, continual measurement of customer satisfaction is offered. It's a commitment rather than a ritual.


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MISSION STATEMENT

To produce quality castings & Pig Iron as per world standard to cater the needs of domestic and international markets and to active “Total customer satisfaction” Through professional system and practices in every field, giving weight age to development of human resource available in the org and ultimately to become one of the best (in term of quality, turnover and efficiency) in India.

To activate the culture of involvement, team works participation unity and this achieves excellence in all efforts and activities by each one here at KFIL.

To establish a clean, Tides and green revolution free environment highlighting the fact that we are for Mother Nature.

To be a projected to external world a progressive well managed well maintained professional organization.

CORE VALUES To achieve the mission and vision, KFIL divided following Values:

Customer orientation Vendor Development

Development of Human Resource

Process and product excellence


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Responsible corporate neighbor

OBJECTIVES OF THE COMPANY

To know the employee satisfaction towards the company

To know the problem faced by the employee in the working condition

To know the cause for the problem To know the interpretation ship between the

employee and the organization To analyze the problem and give suggestion for it To create a peaceful and harmonious working

environment. To attain leadership in the market through service The firm aims at the fulfillment of the required

industrial development in India. Committed to deliver products and services to satisfy

the needs of the customers To make continuous efforts to improve quality by

continuous training To activity involve people to contribute towards high

productivity through team word and innovation. It aims of the training and production of skilled

personnel It aims to the improvement of the locality It aims to contribute towards the economy of the

country. It aims to provide employment to people directly by

the company and indirectly through onside contracts.


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Aims to project itself as model to other industries as self-sufficient, disciplined organization.

It aims to resources locality available and to raise them to global standards.

2.4 PRODUCT PROFILE

An innovative technology from KTS(KORF Technological Sidervrgica Ltd.) Brazil has helped KFIL to design and develop a MBF has come a long way and has enabled many entrepreneurs to produce more than 500 MT of Pig Iron world over.

KFIL is among the first in India to adopt this state of art technology with computer controls to produce consistent quality of Pig iron. KFIL also boasts of a record of projects completion of electing the first MBF within 18 months and second MBF within 9 months.

It has got uniform crystalline pearl tie structure it is slag free and made from the riches grade of iron ore and imported coke. It is supplied to KFIL valued customer of the engineering industry who cater to automotive, tractor, textile, pumps, and spun pipes segments as well as the steel industry.


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PRODUCTION PROCESS OF PIG IRON

PIG IRON PLANT (PIP) Pig iron is produced using raw materials such as iron ore, coke, and fluxes such as limestone, dolomite, quantize, and manganese are pre-requisite quantity of iron ore, coke. Fluxes are then feeded into the furnace by means of the electronic weighing system. Consisting of load cell, batching controller and programmable logic controllers. Pig Iron is produced through MBF`s.

RAW MATERIALS Coke Iron ore Lime stones, Dolomite Aurtoz

Raw material brought-venders site-testing the quality-sent ferrous through convert belts-Raw material put into the silvo-step by step i.e., Coke, Iron ore plasles (Lime stones) quarter-heat-1300c when Iron ore melts than it is typically for every two hours-help of drilling machine when it is drilled the method Iron ore comes out of the ferrous and then in load to barrel- both help of it is into the moulds and


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then sent for cooling purpose when it is paused and cooled then it is ready for marketing.

DEMAND & AVAILABILITY OF PIG IRON (UNITS)

Years Demand Availability

2000-01 2400 3224

2001-02 2900 3469

2002-03 2700 3733

2003-04 2900 4016

2004-05 3100 4322

2005-06 3300 4650

2006-07 3600 4900

2007-08 3800 5750

2008-09 4100 5233

2009-10 4400 5474


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FOUNDRY PLANT:1.MANUFACTURING PROCESS OF FOUNDRY

CASTING:

In the first process they prepare fiber castings and then the same fiber mould which is prepared according to 86 the design of customer and then according to same to fiber mould sand mould and prepared and then they are dipped into the water for to make moulds strong. Then they are placed in box. Then boxes are and arranged in male and female and attached together and sent further their coal is put on their boxes and processed to get a shape and this process in continued. Further the moulds are sent to press pour to those boxes with iron.

This press pour is contained of hot iron liquid after pouring into moulds they are sent for cooling at degree of 300c. After cooling sand is removed and sent for finishing. Press pour contained hot liquid Iron, which is brought from Frances, which has a capacity of 30 tons each, totally they are two foundries having capacity of each furnace of 250mt


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and producing about 400 tons per day. The Iron liquid is bought to casting from first furnaces are shutdown the iron is brought from second furnace and then steel is added to chat melted Iron. Foundry business is the core expertise of the group. In KFIL the state of art technology in foundry is adopted to meet the high volume of demands of automotive and farm mechanization sector. This also meets the requirements like reduced wall thickness, low machining allowance, above all receptive dimensional accuracies. They supply castings in the domestic market companies like KOEL, TATA Engineering Locomotive Co., Punjab Tractor Ltd., Mahindra and Mahindra, Simpson, Maruti Udyog Ltd.

2.THE LIST OF INDUSTRIAL PRODUCTS:

The following table represents the basis of products differentiation & the list of industries where these products are used.


Pumps11%

Automobile26%

Others20%

Fans3%

Engines6%

Pipes12%

Agriculture10%

Textiles12%

Textiles

Pumps

Automobile

Pipes

Engines

Fans

Agriculture

Others

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Different Chemical composition is the reason for production of different kinds of products. Mainly products are differentiated on the basis of silicon compensation. Company has got different kinds of customer varying between with high or low range of silicon contents.

OWNERSHIP PATTERN

KFIL is Public Limited Company, It has issued shares to the general public, and it gives regular dividend to share holders

COMPETITIORS TO KFIL

NECO LANCO INDUSTRIES LTD SESA INDUSTRIES LTD SATHAVAHANA ISPAT LTD


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JSVL KALYANI STEEL LTD

PIG IRON COMPETIORS FOUNDRY COMPTITORS

1.Sesa Goa 1. Ashok Iron Works Private. Ltd.

2.Kudharemukha Iron & Ore 2.DGP Foundry

3.Kalyani 3.Nelcast

4.JSW

5.Usha Ispat

5.7 INFRASTRUCTURAL FACILITY

PIG IRON PLANT

Mini Blast Furnace (MBF):

Mini Blast Furnaces: 250 cubic meters – 2 nos.

Capacity of liquid metal production : 240,000 tons per year.

Pig Casting Machine: 2 nos.

Capacity : 76 MT per hour.

Spectra lab: Analysis of 18 elements in 60 seconds.

Power Generation:

Turbine Generators: 2 nos.


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Capacity : 7 MW

Diesel Power Plant with capacity : 19 MW

FOUNDRY PLANT

Melting:

ABB Make Holding / Melting Furnaces : 3 crucibles & 2 controls

Capacity: 30 tons holding capacity, each.

ABB make Press Pour Furnace with 7 tons holding capacity

Mould Shop:

George Fischer makes high pressure moulding machine and auto mould handling system.

Type of moulding machine : Air Impact Plus

Speed : 70 moulds per hour

Box Size: 1250 X 900 X 400 / 400 mm.

Core setting mechanisms: 2 nos.

Sand Plant with capacity of 110 tons per hour with mold ability controller.

Core Shop:

Cold Box Core Shooters:


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Core Shooter capacity : 40 liters

Number of core shooters: 20 nos.

Shell Core Shooters:

Capacity : 40 liters, 20 liters and 15 liters

Number of core shooters: 10 nos.

Casting cleaning:

George Fischer designed Special Purpose Shot Blast

machine

Hanger type shot blast machine

Quality:

ARL Spectrometer

Chemical laboratory

Sand laboratory

Brinnel Hardness Tester

Universal testing machine

Casting sectioning machine

Microscope with photo & CCTV attachment


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WORK FLOW MODEL PIG IRON

The raw material required for manufacturing Pig iron

are iron ore, lime stone, manganese, coke and dolomite. There are 2 MBF functioning in KFIL for manufacturing by adopting following procedures:

PROCESS

Iron with ferrous is reduced in he presence of metallurgical coke in a blast furnace into which they are charged along with fluxes in après determined production manner the carbon monoxide gas that raises up HT column or the change reduced that Iron oxide. The molten Iron is periodically tapped and cast in moulds placed on a large


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diameter turntable – the blast furnace process used for producing pig iron in a process which is used world over the only difference in this case the small size of the blast furnaces in comparison with those seen in integrated steel plants. The mini blast furnaces process is already in use in several countries especially Brazil and China. There is viable in spite of its small size because of several capitals and operating cost.

MOULDING First the pattern is prepared for moulds according to

the requirements of the customers. High squeeze presence high density molding machine short squeeze for the box size. The health of the molding high quality dimension stability of the green sand moulds will be achieved to give dimensional close control of the casting molding machine.

CASTING Casting is the final produce produced by KFIL, for

producing casting the hot molten metal is poured in to the mould through runners of moulds and the hot metal occupies the shape of the mould and it is allowed to solidity.

After solidification the caste item is reversed from the molding box and necessary operations like grinding and


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other process are carried out to set required dimensions according to the requirements.

2.5 ORGANIZATIONAL STRUCTURE OF THE COMPANY

INTRODUCTION:

The organizational structure of an enterprise would depend upon its size, product manufactured and its functional divisions. The organizational structure may be flexible. The company may change its structure according to the needs and suitability.

In KFIL the Board of Directors is having the major position in the company. Managing Director (CMD) is held responsible for formulating and implementing the Policies, Procedures and rules with the assistance of Board of Directors appointed by the Government and various financial institutions. Different functional


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department heads like Production, Marketing, Finance, and HRD&A etc also assists him.

Each functional department heads are assisted by the Assistant Managers. There is always coordination between all functional departments through horizontal communication.

ORGANIZATONAL STRUCTURE


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2.6 DYNAMIC PEOPLE OF KFIL

Mr. Atul C. Kirloskar (Chairman)


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Mr. Sanjay C. Kirloskar Mr. R. V. Gumaste (Managing Director)

BOARD OF DIRECTORS Mr. A. R. Jamenis Mr. C. V. Tikekar Mr. S. N. Inamdar Mr. G.A. Tada Mr. A.Moudewadi

COMPANY SECRETARY Mr. C. S. Panicker

AUDITORS M/s. P. G. Bhagwat

BANKERS State Bank of India Bank of Maharashtra Andhra Bank UTI Bank Ltd ICICI Bank Ltd IDBI Bank Ltd ING Vysya Bank Ltd HDFC Bank Ltd


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CHAPTER-3

FUNCTIONAL DEPARTMENTS

HUMAN RESOURCES

FINANCE

PRODUCTION

PURCHAGE AND STORE

MARKETING

RESOURCES

RESEARCH AND DEVELOPMENT

3.1 HUMAN RESOURCE DEPARTMENT


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In accordance with our mission of 'DESTINED TO SCALE NEW HEIGHTS' we strongly believe that, a satisfied employee is an unadvertised asset of a company. Hence, we at, Kirloskar Ferrous Industries Ltd., are committed to bind the organization with a common purpose, a common mission and common values so as to continuously upgrade quality of work life of our employees through:

Creation of good working environment and shared accountability for quality, safety and knowledge.

Adoption of improved work practices to foster the intellectual capital.

Develop people with high degree of entrepreneur ability and leadership qualities.

Develop emotional togetherness for strong ownership.

Defining the role & responsibilities of employees to generate empowerment and right leadership.

Encouraging teamwork, participation & involvement to effectively deal with negative residues.

Development of personnel to create knowledge tank and a learning base to defeat competition.

Recognize performers through rewards and recognition.


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HUMAN RESOURCES ETHICS:

Developing passion for excellence is the core of our HR philosophy.

Developing potential HR in order to achieve corporate goals and objectives.

Focus on grass root level for transformation into potential leaders.

Educate HR to develop extra - ordinary reasoning power and move towards enrichment of life.

Belief that our success depends on the motivated workforce who bring out their best to achieve job requirements.

As a learning organization the company adopts a team learning process to create a strong knowledge base.

We believe in the process of empowerment for success.

Building self - driven and committed employees with competencies necessary for high level of sustained performance, retention and motivation of key employees.

Maintaining the dignity of employee as a human being.

CAREER WITH KIRLOSKAR:


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Provides suitable and most productive assignments, which brings psychological satisfaction.

A congenial working environment comparable to the best in the industry; an enviable professional growth.

Provides maximum opportunities for personality development.

Competitive compensation, benefits and remuneration based on results is our policy today and focus in the future.

OBJECTIVES OF THE HUMAN RESOURCES DEVELOPMENT

Human resource department is to be with the employee from his training to till his separation.

Human resource department constantly care for each employee right from his induction to his separation.

Projecting manpower to recruit only qualified people as per the recruitment specification.

Development the available manpower to the maximum possible extent through training.

HUMAN RESOURCE POLICY OF KFIL:

Company recruit only qualified people as per the recruitment specified in the manpower plan.

The availability manpower shall be developed to the maximum possible extent through training.

The training shall be imparted on the basis of job recruitment of each employee.

The training to an employee shall be of two types.


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ON THE JOB TRAINING by concerned supervisor and Section head and department head.

OFF THE JOB TRAINING by the HRD department

AUTHORITIES & RESPONSIBILITIES OF HRM:

Manpower planning, recruitment and selection placement.

Training and development. Performance appraisal, wage and salary

administration. Security, transport fire and safety. Industrial relations dealing with government. General administration including public and guest

relations. Estate management covering horticulture, guesthouse

etc. Administration of welfare activities covering canteen,

medical, etc.

Human resource department coordinates all other departments and helps them to work effectively. This department performance all those functions which crates a sense of belongingness among all the workers. Apart from this it also maintains a cordial relationship between other industries


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THE VARIOUS FUNCTIONS PERFORMED THIS DEPARTMENT ARE: Recruitment Selection Interview Placement Wage and salary administration Training and development Performance appraisal Promotion and transfers

And all those functions which helps to motivate the employees and which leads to increase their morale.SOURCES TO RECRUIT THE CANDIDATES: E –recruitment Advertisement in news paper Walk in interview Campus interview Data bank

Promotion is totally based on merit of the employees. Company believes in promoting those employees who really contributes towards the growth of the organization.

Company evaluates the performance of the employees by using 360 degree performance appraisal method. In this method company considers the opinion of the 3 major evaluators they are as fallowing; Self appraisal Superior Suppliers and customer


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Training plays major role in structure of the individual personality. Company preference on the job training it includes: Job rotation Coaching Class room training

Other than the usual work process it also performs the other functions like maintaining the industrial relations among other industries, motivating the employees by conducting and by implementing continuous training program etc.,

3.2 FINANCE DEPARTMENT Finance department deals with various functional activities of the organization. The books of record of KFIL is maintained by fully own built software system. The general manager of this department is Mr.Srinivasan.

FUNCTIONS OF FINANCE DEPARTMENT:

1. Funding activity:

Banks provide both long-term & short-term funds. Long-terms funds like debentures term loans, etc. are used for project financing. Short-term Loans are taken to meet the working capital requirement. Commercial banks help in providing short term funds. Individual banks will not finance the whole requirement but they will share with other banks.


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The finance department will be having the continuous Communication with the head office, so that the corporate office can transfer the funds to its unit. This operation is called as ‘Fund transfer booking’.

2. Treasury function:

They will maintain cash or bank balance book for any payments.

They will use only cheques for making transactions.

3. Book keeping:

A company should maintain books of accounts. There is an own built computerized system including the accounts of sale, purchase, cash/bank, stock, tax, fixed assets, etc.

The department has to disclose the information by closing the books monthly. The books disclose the information to the share holders of the company.

4. Audit: There are two kinds of audit:

Internal audit – calls some of the outsiders or company people them self’s conducts audit & it is disclosed to the department only.

Statutory audit – yearly report is addressed to the share holders.


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Shareholding Pattern of the Company

Particular No. Of Shares

Percent Shares(%)

Promoters and Promoters Group

80,941,870 58.95

Financial Institutions 3,565,000 2.60

Nationalised Banks 500 0.00

Non Nationalised Banks NIL NIL

Insurance Companies 4,000 0.00

Non Resident Indians 1,465,032 1.07

Mutual Funds 6,750,405 4.92

Foreign Institutional Investors

48,100 0.03

Domestic Companies 5,641,823 4.11

Trust 200 0.00General Public 38,891,151 28.32

Total 137,308,081

100.00


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3.3 PURCHASE & STORE DEPARTMENT

To ensure availability of raw material with management quality and quantity at right time with right price. To consider suppliers as partners in our business towards TQM goals. It has keep FIFO method of storing materials. On the basis of item code delivery order is to be considered. On the basis of store entry report, material has to be issued. Department member is checking the materials. Company using Oracle System for materials flow, process flow.

MISSION OF PURCHASE DEPARTMENT: That it is “To ensure the availability of the material

with quality and right quantity at right time right price”.

The factors considered by the purchase department are price, quality, and supplier background.

The main objective of purchase department is to reduce the cost of maintenance. At present the total purchase turnover is 400 per annum. Three grade of material A, B, C.

1. Directly used material – iron, ore, coke, etc.2. Supporting system.3. Other raw material


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MATERIALS WITH SUPPLIERS:MATERIALS SUPPLIERS

1.Grade sand Mangalore minerals

2.Iron ore -V.S. Laad & sons -National minerals development-Rajalaxmi minerals - Guru Rajendra minerals

3.Low grade iron ore lumps -Rajapur mineralsBellary mining corporation

4.Low grade sponge iron -Hospet Ispat Ltd,

5.Merallurgical coke -Adhi global pvt Ltd,-IMR metallurgical

6.Lime Stone -Sharada cements-Vaadhiraj minerals

7.Dolomite -Vaadhiraj minerals

8.Scrap bundle -Mysore enterprises

PROCUREMENT PLAN / INDENT CREATION – PROCESS FLOW


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3.4 PRODUCTION DEPARTMENT


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PRODUCTION:

As history has it, the Kirloskar dream started taking shape on 32 acres of barren land strewn with cacti and infested with cobras. Driven by the faith in human ability, Laxmanrao Kirloskar banded together 25 workers and their families and went to transforming the barren expanse into his dream village. Since then a century had passed and there has been no looking back. Those 32 acres has expanded into 350,000 m. sq of developed land with state of art facilities.

PRODUCTION FUNCTION: Equipment processes personnel are qualified to perform the required operation’s respective department reports qualified records objectives evidence of conformance to specified requirements.

PRODUCT IDENTIFICATION TRACEABILITY:

1. Purpose: To provide guidelines for establishment procedure fire identifying the product by suitable mean’s respect during stages of production to delivery.

2. Quality system: To provide guidelines to establish. Document & maintaining a quality a means to ensure that product conformance to requirements. To outline structure of documentation in quality


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systems. Trade line document, the quality planning is done to meet the requirements of product.

3. Method: Incoming raw materials shall be identified by location marked for supplier wise storage other materials are identified by any of the following means tag location for storage point marks pencils marks name plates boards sticker.

Quality assurance manual (QAM): The top ties document prepared primarily conveying the organization commitment to quality & maximizing customer satisfaction

Common procedure manual (CPM): This is second ties document issues to all department heads for common procedure.

Divisional procedure manual. (DPM): This is also second ties document prepared by divisional heads dealing how a job is done with responsibility specified department procedure of HRM & TRG are prepared by respective department heads.

4.Work instruction: This is third ties document primary to operate with specify work details there are generally issued by document or sectional heads & when required they translated in vernacular language (Kannada) Forms/ formats


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Standards check seats supporting documents etc these are

primarily designed by departments taking into consideration

the procedures/ work instruction details.

MANUFACTURING PROCESS:

1.Charging the blast furnace: After processing, the ore is blended with other ore and goes to the blast furnace. A blast furnace is a tower- shaped structure, made of steel, and lined with refractory or heat – resistant bricks. The mixture of raw material, or charge, enters at the top of the blast furnace. At the bottom of the furnace,

every hot air is blown, or blasted, in through nozzles called tuye’res. The coke burns in the presence of the hot air. The oxygen in the air reacts with the carbon in the coke to from carbon monoxide.

C + O2 -----> 2CO

(Coke) (Hot Air) (Carbon monoxide)


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2. Separating the iron from the slag: The melted iron sinks to the bottom of the

furnace. The limestone combines with the rock and other impurities in the ore to form a slag which is lighter than the iron and floats on top. As the volume of the charge is reduced, more is continually added at the top of the furnace. The iron and slag are drawn off separately from the furnace. The melted iron might go to a further alloying process, or might be cast into ingots called pigs. The slag is carried away for disposal.

3. Treating the gases: The hot gases produced in the chemical reaction are drawn off at the top and routed to a gas cleaning plant where they are cleaned, or scrubbed, and sent back into the furnace; the remaining carbon monoxide, in particular, is useful to the chemical reactions going on with in the furnace. A blast furnace normally runs day night for several years. Eventually the brick lining to crumble and the furnace is then shut down for maintenance.

Pig Iron


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Pig Iron: Grades

The specifications of the various grades of Pig Iron produced at KFIL are as follows:

PIG IRON GRADES

Carbon (%) Silicon (%) Manganese (%)

Sulphur (%) Phosphorous (%)

Foundry Grade

3.80–4.20 3.80–4.20 3.80–4.20

2.00–2.50 1.80–1.99 1.51–1.79

0.50–0.90 0.50–0.90 0.50–0.90

0.06Max 0.06Max 0.06Max

0.09Max 0.09Max 0.09Max


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Basic Grade 3.80–4.20 3.80–4.20 3.80–4.20

<1.00 1.00–1.25 1.26–1.50

0.40–0.80 0.40–0.80 0.40–0.80

0.08Max 0.08Max 0.80Max

0.09Max 0.09Max 0.09Max

S.G. Grade 3.80–4.20 1.50–2.10 0.30Max 0.03Max 0.08Max

FOUNDRY: Grade Specifications of the various grades of Foundry produced at KFIL are as follows

India Standard IS 210-78

British Standard BS: 1452-98

Japanese Standard JIS: G-5501-89

German Standard DIN: 1691-85

USA Standard ASTM 48-83

ISO Standard ISO: 185-88

FG200 180 FC 200 GG – 20 30A 200

FG220 220 FC 250 GG – 25 35A 250

FG260 260 GG – 30 40A 300

FG300 300 FC 300 GG – 30 45A 300


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3.5 MARKETING DEPARTMENT


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VISION ‘To be world class product leader through the state of the art manufacturing technologies and processes’

MISSION “A family committed to growth and prosperity of the organization through leadership attributes and quality orientation of people and processes that continuously satisfy the customers with their ever changing needs”

MARKETING POLICY “In the direction of achieving the company’s mission, the marketing team- PIP endeavors for maximization of sales and realization for the company’s product while meeting the customer’s requirement to their all round satisfaction”.

STRATEGIES Maintaining quality leadership On – Time delivery Strong dealership network Customer orientation Customer driven Performance tracking of competitors

MARKETING DEPARTMENT STRUCTURE


MANAGING DIRECTOR

VICE PRECIDENT

DIVISIONAL GENERAL MANAGER

MANAGER

DEALERS DISTRIBUTORS

CUSTOMERSCUSTOMERS

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NAME OF THE CUSTOMERS LOCATION

1.Electro steel casting limited Chennai

2.Breaks India Chennai

3.Laxmi Mission works Coimbatore


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4.Texmo pumps Coimbatore

5.Bangaore metallurgical Bangalore

6.Ashok in works Belgaum

7.Gadge patil industries Kolhapur

8.Kapilanch datu udyog Nagpur

9.Prashant casting Rajkot

10.Punjab tractors limited Punjab

11.Shriram piston rings Gaziabad

CUSTOMERS FOR PIG IRON ARE AS FOLLOWS:

PRICING OF KIRLOSKAR:

The name kirloskar itself is the mark of the customer KFIL has I got the opinion of transporting pig iron to the buyer sites to the buyer.

The service like transporting is rendered to customer by KFIL with very nominal charges.

In KFIL we come across different price terminologies: List Price Discount Allowance Payment Periods Credit Terms.


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LIST PRICES: nothing but the selling price. It is also called basic salary.

Basic price = Production Cost + Profit.Production cost includes both variable cost &fixed cost.If the transport is under taken by KFIL then boarded price is calculated according to sites mentioned in receipts.Record Price = Basic Price + Freight +CED (Central Excise Duty)A discount of Rs 100/- price is given to the regular &bulk buyers.

Price of KFIL pig iron ore comparatively more when compared to competitors. Even with this more also KFIL has succeed in reaching top market share holding position in the pig iron market of foundry people prayer KFIL pig iron because of the following reasons.

High Quality Fixed Chemical Composition. Test Certificate Are Issued With Every Load Almost 0%Impurities & Slag Mix Up.

If customer demands for 2.25% silicon then KFIL will supply exactly with this composition. Where others supply with range between i-c 22.25 silicon.

Opening furnace KFIL iron weights 7kg’s KFIL brand name helps in attracting customers. From above points it is clear that KFIL is not using any mark penetrate pricing strategy to penetrate the market instead it is using mark skimming pricing straightly.

PROMOTION:


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KFIL has appointed numbers of dealers throughout India for its marketing purpose each dealer will get rs100/- PMT as commission for the pig iron he sells credit notes are given to these dealers for his commission.

Pig iron is also give credit sales as one of the promotion tools to attract customer credit time depends on areas (less credit period is for north zone) & order they give.

DISTRIBUTION: KFIL has got distribution network spread all

over India inform of dealer ships & also through company’s employee KFIL has divided its market into 7 zones.

Zone A Karnataka Belguam, shivamoga Bangalore.

Zone B Andra Pradesh Hydrabad,vijayvada

Zone C Maharastra Pune,Mumbai nagpur solapur

Zone D Gujarat Ahemadabad rajkot,surat

Zone E Rajastan Jaipur

Zone F Delhi Delhi,zadhinoor,agra

Zone G Tamil nadu Chennai, coimbatore ,madurai.

3.6 RESEARCH & DEVELOPMENT

In this era of constant change, where what

is old is considered dead we have been able to match


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steps with the latest technological changes.

Technological innovation is the core of our original

product design function. We believe in pro-active

product development, to precisely meet the needs of

customers and operating conditions. Expanding to meet

the ever-changing needs of the customers comes

naturally to us.


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CHAPTER-04POLICIES & EVENTS OF THE COMPANY

POLICIES SAFETY POLICY:


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In accordance with our mission of "DESTINED TO SCALE NEW HEIGHTS",

To provide safe machinery, equipment, methods, operations, tools and environment for prevention of accident.

To achieve an integrated safety & health system in all areas of activities.

To enforce relevant statutory provisions of safety and health for preventing accident.

We expect our employees:

1. To observe safety rules

2. To use safety appliances and devices

3. To report to managers any unsafe condition of machines

4. To work as per lay outs

5. To care for personal hygiene

6. To practice safety conscience, culture

7.To be always alert in accident prevention measures

HEALTHY POLICY:

In accordance with our mission of "Destined to scale new heights", we firmly believe that health & hygiene of employees is extremely important to improve the quality of life. To achieve this, we shall strive for improved health


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standards, better and safe working practices and eco-friendly environmental workstations.

We are therefore committed to:

Provide wholesome healthy environment for our employees to prevent occupational health hazards

Achieve health integrated systems in all the areas of operations

Enforce relevant statutory controls for prevention of diseases and epidemics to maintain sound Health.

We expect our employees to co-operate by:

Keeping good health and hygiene Practicing healthy habits and learn to care for

personal hygiene

Having medical surveillance through periodic health check-ups

Maintaining good health and sound mind to promote a healthy working environment.

All employees shall Endeavour to achieve this ultimate goal of "Health for All".

COMMUNITY SERVICES:

Social welfare: Company is located only 16 kms away from the major industrial town Hospet and 16 kms away from


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Koppal in Karnataka State. Company is located on NH-13 & NH-63 connected to both these towns. The employees are picked up & dropped by chartered busses and vans. In both the towns, there are very good schools and colleges inclusive of Professional colleges to enable the children of our employees to pursue higher education.

As a philosophy, we have an objective concern for the welfare of the society to restrain individual or corporate behavior from ultimately destructive activities, no matter how immediately profitable and to lead in the direction of positive contributions to the human settlement.

We as an economic unit within the society, irrespective of profit / loss, consider our duty to repay the debt towards the society.

Our social contribution goals:

Provision of quality health care / drinking water. Provision of employment opportunities

Environment protection and maximum efforts to prevent environmental hazards

Improving community life of people & Building infrastructure

Affordable quality education

Safety of employees, customers, minorities, women and community

Changing social needs, values and demands

Contribution to national exchequer. Foundation.


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ENVIRONMENT MANAGEMENT:

KFIL has been awarded ISO - 14001 Certification by IRQS on 27th of August 2002 for its commendable achievements and improvements in Environmental Management Systems.

Our commitment to protect and upgrade the environment is embodied in our Environmental Policy wherein cost effective methods for waste management, prevention of pollution and resource conservation are main elements.

Environment Policy:

In accordance with our mission of "DESTINED TO SCALE NEW HEIGHTS",

We, at Kirloskar Ferrous Industries Limited, manufacturers of Pig Iron commit to protect and upgrade our Environment through:

Systematic and Cost effective methods for waste management.

Control of all pollutants within prevailing acceptable limits through best available technology resources & periodic reviews enabling continuous improvement.

Optimal utilization and conservation of resources through effective recycling and re-use practices.

Compliance of all applicable Environmental Laws and Regulations.

Environmental awareness programmes to all Employees through Training.


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Communication of this Policy to interested parties for their participation & involvement into the preservation of our environmental norms.

Plantation of thick and tall growing trees, providing sprinkling systems, providing a compound wall across the Northern and North-Eastern Boundary are all done to restrict fugitive emissions entering into neighboring village and to protect the agricultural crops there.

A study of the same has been entrusted to University of Agricultural Sciences, Dharwad for assessment of soil health and crop yield.

Regular monitoring of various environmental parameters.

Conversion of around 200 meters of barren land into a green belt.

Transferring the wastes generated in the process to user industries.

Installation of wastewater treatment plant at an annual operating cost of 1.5 Crore Rupees.

MAJOR EVENTSYEAR EVENTS1994 Mini Blast Furnace I commenced commercial production

1994 Turbo Generator I taken on lease having a capacity for the genaration of 3.5 MW of power using B.F.Gas.

1995 Setting up a facility having a capacity to draw water from the


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Tungabhadra dam

1995 MBF II taken was lease, was installed and commissioned in a record time of 9 months

1995 ISO-9000 certification received

1997 Foundry Capacity was increased from 425,000 moulds per annum to 475,500 moulds per annum

1998 Started supply of TG power to foundry Company allotted preference shares of Rs. 45 Crores to increase the shares capital.

1999 Company called an extraordinary general meeting of the shareholders on October 29, to consider erosion of more than Company’s peak net worth during immediately preceding four financial years pursuant to section 23 of Sick industrial companies special provision act 1985. 2000 Company entered into financial restructuring with IDBI and with other Institutions namely IFCI, IIBI, GIC, OIC, LIC & NIA.

2001 Quality Standard 9000 certification received. Company allotted preference shares of Rs. 27.22 Crores to increase the


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shares capital. Company allotted Equity shares of Rs. 13.72 Crores to increase the equity shares capital.

2002 ISO-14001 certification received company entered into financial restructuring with IDBI & with other institutions. Company allotted preference shares of Rs. 32.46 Crores to increase the share capital. company entered into profit.

2003 Company entered into settlement with Financial Institutions For the repayment of the loans. Company entered into profit for the second consecutive year.

2004 Company repaid entirely the loans taken from Financial Institutions bearing high rate of interest. Thereafter the company took reduced loans at lower rate of interest. Company entered into profit for the third consecutive year.

2005 TS 16949 certification received 83 Commissioning of an induction furnace of 12 tonne capacity. Company paid Dividend of Rs 11.33 Crores on preference shares. The shareholders passed special resolution for reducing the face value of equity shares Rs.10 each to Rs.5 each fully paid up


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for the winding up accumulated losses to the extent of Rs.36.11 Crores. Company entered into profit for the Fourth consecutive year.

2006 Company paid dividend including arrears of Dividend amounted to Rs. 22 78 Crores on preference shares. Company purchased the MBF II and TG I ,II which were earlier taken on lease

CHAPTER-05SWOT ANALYSIS

FINDINGSSUGGESTIONSCONCLUSION


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SWOT ANALYSIS OF THE COMPANY“Business for us is when you have the time to show that you care”

STRENGTHS:

Established market/brand name. Growth in automobile market. Nearer to iron source. Delivery to customer as per schedule Use of byproduct CO gas for generation of

electricity helps to reduce cost of production. Easy availability of skilled and semiskilled human

resources due to presence of villages and ITI, Diploma and engineering Institutions nearby.

Quality is established presence in all market eastern zones, reasonable transportation facilities available for all area 25% of production is tied up with institutional customer.


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China’s policies for issuing licenses for coke export Impact on iron ore prices International demand for steel Impact on international steel prices and Domestic

steel prices Government policies

WEAKNESS: The cost involved in completion of product is high. Inconsistency in appearance Already at peak utilization of current capacity Weakness core expertise on prevention

maintenance Total dependence on imported coke High coke consumption due to higher fines and

handing costs due to multiple handling Higher basic coke consumption due tousle of metallic

blast preheated in place of stove. As customers expectations are increased day by day

it has become difficult to satisfy them completely.

OPPORTUNITIES: As KFIL good market edge KFIL can market 20000

per month of foundry grade pig iron every month. Can capitalize on up swings in market demand

because of all India presence. Focus on casting market development in Europe and

Japan for OE customers. Many multinational companies are venturing their

base in India. Growth in Indian foundry capacity.


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THREATS: Government regulations. Imposition of sales tax Possibility of coke prices going up Price of goods are comparatively high Adopting auto motive machines may cause fear

among the existing employees of job loss which may affect morale and productivity of employees.

New entrants in market may dilute the market share of the company.

FINDINGS

After making a study of the organization the following are some of the findings:

Lots of waste coming out from process. Free and good Medical facilities Canteen facilities are low level of satisfaction. The authority will flow from top level to bottom level

management. The trend in the industry shows that the assets of the

company are efficiently utilized to generate sales. Suggestion scheme, education level, environment

policy and safety measures work disciplines have scored high level on the job satisfaction.

Life span maintenance is not maintained so it decreasing regular efficiency.


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SUGGESTIONS Production capacity has to increase by adopting high

technical machines according to demand Maintaining proper life span replacement may

increase the efficiency of production. The Organization should take suggestions from

workers and that have to be implemented seriously By adopting more and more technological methods in

production it can enter easily to global market The organization should adopt various cost cutting

measures by 1. Reduction in wastage 2. Reduction in maintenance.

CONCLUSION

The 5 weeks in plant training in KFIL has given a detailed knowledge of the management of an organization and a clear picture of work flow of the complex organization. KFIL is a pig iron plant which is used as a basic raw material for the production of the steel. This study has given a information of how really a big organization works by facing so many hurdles. As it is a pig iron plant it totally covered by the risks & company is successfully overcoming the problems.


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The culture in KFIL is very cordial and the atmosphere of the workforce is also very good which contributed to the study a lot.

BIBILIOGRAPHY

Company annual reports

KFIL Journals

Office records

Broachers

WEBSITE

www.Kirloskar.com

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Kirloskar PROJECT FILE 2012

Education

Transcript of Kirloskar PROJECT FILE 2012