MATIN VOHRA

NAME MATIN I VOHRA

UNIVERSITY SARDAR PATEL UNIVERSITY

CLASS SY BBA [FOREIGN TRADE]

ROLL NO 27

COLLAGE FH SHAH INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY

YEAR 2009-2010

1

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PREFACEBBA Foreign trade is very different course from any other course During my entire visit I know some theoretical knowledge and practical knowledge about the international trade

Industrial visit is one of the important aspects of this syllabus One of the important aspects of this syllabus we believe that but hority had a particular purpose in mind when they includes full paper the theoretical knowledge understand able only when enter in to practical knowledge

FT is the exchange of the goods and services across international boundaries or territories

In most countries foreign trade represents a significant share of gross domestic product

Foreign trade has been present throughout most of history foreign trade is major source of economic revenue for any nation that is considered a world power

Foreign trade is also a branch of economic which together with international finance forms the branch of foreign economic

BBA foreign trade covered different types of subject they are as follows

1 International Marketing Management2 International Financial Management3 Transportation amp Material Handling4 Foreign Trade Policy5 Quality Management in FT6 Industrial Organization7 Economic Analysis for business Decision

2

MATIN VOHRA

ACKNOWLEDGEMENT

3

MATIN VOHRA

SCHEDULE OF INDUSTRIAL VISIT

DATE TIME SCHEDULE

07-12-2009 (MONDAY)

08-12-2009 (TUESDAY)

09-12-2009 (WEDNESDAY)

10-12-2009 (THURDAY)

1000 TO 100 pm

300 TO 600 pm

1000 TO 300 pm

500 TO 600 pm

900 TO 300 pm

1200 TO 300 pm

500 TO 600 pm

MESO PVTLTD

KANDALA PORT

PSL LTD

HANDI CRAFT MARKET HUNT

MUNDRA PORT amp SEZ

LEC ON EXIM AT PSL LTD

KESARI OIL PVT LTD

4

MATIN VOHRA

REPORT

ON

MUNDRA PORT amp SEZ Ltd

(ADANI GROUPS)

5

MATIN VOHRA

ADANI GROUPS

MUNDRA PORT

[09-12-2009]

INDEX

6

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SRNO PARTICULAR PAGE NO

1 INTRODUCTION

11 About Adani Group12 About Mundra Port

13 Strength of Mundra Port14 Location of Port

2 ORGANISATION Values amp STRUCTURE

11 Vision amp Mission12 Structure of Management

3 HUMAN RESOURCE MANAGEMENT

4 FINANCIAL

5 FUTURE PLANS

6 FACILITIES

1-CARGO

2- TERMINAL

7 CONCLUSION

INTRODUCTION

About Adani Group

7

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Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder

The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007

To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus

Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider

8

MATIN VOHRA

About Mundra Port

9

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The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country

With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port

Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency

With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo

PORTS STRENGTH

Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895

10

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

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Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

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Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

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MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

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FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

PREFACEBBA Foreign trade is very different course from any other course During my entire visit I know some theoretical knowledge and practical knowledge about the international trade

Industrial visit is one of the important aspects of this syllabus One of the important aspects of this syllabus we believe that but hority had a particular purpose in mind when they includes full paper the theoretical knowledge understand able only when enter in to practical knowledge

FT is the exchange of the goods and services across international boundaries or territories

In most countries foreign trade represents a significant share of gross domestic product

Foreign trade has been present throughout most of history foreign trade is major source of economic revenue for any nation that is considered a world power

Foreign trade is also a branch of economic which together with international finance forms the branch of foreign economic

BBA foreign trade covered different types of subject they are as follows

1 International Marketing Management2 International Financial Management3 Transportation amp Material Handling4 Foreign Trade Policy5 Quality Management in FT6 Industrial Organization7 Economic Analysis for business Decision

2

MATIN VOHRA

ACKNOWLEDGEMENT

3

MATIN VOHRA

SCHEDULE OF INDUSTRIAL VISIT

DATE TIME SCHEDULE

07-12-2009 (MONDAY)

08-12-2009 (TUESDAY)

09-12-2009 (WEDNESDAY)

10-12-2009 (THURDAY)

1000 TO 100 pm

300 TO 600 pm

1000 TO 300 pm

500 TO 600 pm

900 TO 300 pm

1200 TO 300 pm

500 TO 600 pm

MESO PVTLTD

KANDALA PORT

PSL LTD

HANDI CRAFT MARKET HUNT

MUNDRA PORT amp SEZ

LEC ON EXIM AT PSL LTD

KESARI OIL PVT LTD

4

MATIN VOHRA

REPORT

ON

MUNDRA PORT amp SEZ Ltd

(ADANI GROUPS)

5

MATIN VOHRA

ADANI GROUPS

MUNDRA PORT

[09-12-2009]

INDEX

6

MATIN VOHRA

SRNO PARTICULAR PAGE NO

1 INTRODUCTION

11 About Adani Group12 About Mundra Port

13 Strength of Mundra Port14 Location of Port

2 ORGANISATION Values amp STRUCTURE

11 Vision amp Mission12 Structure of Management

3 HUMAN RESOURCE MANAGEMENT

4 FINANCIAL

5 FUTURE PLANS

6 FACILITIES

1-CARGO

2- TERMINAL

7 CONCLUSION

INTRODUCTION

About Adani Group

7

MATIN VOHRA

Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder

The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007

To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus

Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider

8

MATIN VOHRA

About Mundra Port

9

MATIN VOHRA

The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country

With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port

Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency

With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo

PORTS STRENGTH

Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895

10

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

ACKNOWLEDGEMENT

3

MATIN VOHRA

SCHEDULE OF INDUSTRIAL VISIT

DATE TIME SCHEDULE

07-12-2009 (MONDAY)

08-12-2009 (TUESDAY)

09-12-2009 (WEDNESDAY)

10-12-2009 (THURDAY)

1000 TO 100 pm

300 TO 600 pm

1000 TO 300 pm

500 TO 600 pm

900 TO 300 pm

1200 TO 300 pm

500 TO 600 pm

MESO PVTLTD

KANDALA PORT

PSL LTD

HANDI CRAFT MARKET HUNT

MUNDRA PORT amp SEZ

LEC ON EXIM AT PSL LTD

KESARI OIL PVT LTD

4

MATIN VOHRA

REPORT

ON

MUNDRA PORT amp SEZ Ltd

(ADANI GROUPS)

5

MATIN VOHRA

ADANI GROUPS

MUNDRA PORT

[09-12-2009]

INDEX

6

MATIN VOHRA

SRNO PARTICULAR PAGE NO

1 INTRODUCTION

11 About Adani Group12 About Mundra Port

13 Strength of Mundra Port14 Location of Port

2 ORGANISATION Values amp STRUCTURE

11 Vision amp Mission12 Structure of Management

3 HUMAN RESOURCE MANAGEMENT

4 FINANCIAL

5 FUTURE PLANS

6 FACILITIES

1-CARGO

2- TERMINAL

7 CONCLUSION

INTRODUCTION

About Adani Group

7

MATIN VOHRA

Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder

The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007

To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus

Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider

8

MATIN VOHRA

About Mundra Port

9

MATIN VOHRA

The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country

With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port

Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency

With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo

PORTS STRENGTH

Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895

10

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

SCHEDULE OF INDUSTRIAL VISIT

DATE TIME SCHEDULE

07-12-2009 (MONDAY)

08-12-2009 (TUESDAY)

09-12-2009 (WEDNESDAY)

10-12-2009 (THURDAY)

1000 TO 100 pm

300 TO 600 pm

1000 TO 300 pm

500 TO 600 pm

900 TO 300 pm

1200 TO 300 pm

500 TO 600 pm

MESO PVTLTD

KANDALA PORT

PSL LTD

HANDI CRAFT MARKET HUNT

MUNDRA PORT amp SEZ

LEC ON EXIM AT PSL LTD

KESARI OIL PVT LTD

4

MATIN VOHRA

REPORT

ON

MUNDRA PORT amp SEZ Ltd

(ADANI GROUPS)

5

MATIN VOHRA

ADANI GROUPS

MUNDRA PORT

[09-12-2009]

INDEX

6

MATIN VOHRA

SRNO PARTICULAR PAGE NO

1 INTRODUCTION

11 About Adani Group12 About Mundra Port

13 Strength of Mundra Port14 Location of Port

2 ORGANISATION Values amp STRUCTURE

11 Vision amp Mission12 Structure of Management

3 HUMAN RESOURCE MANAGEMENT

4 FINANCIAL

5 FUTURE PLANS

6 FACILITIES

1-CARGO

2- TERMINAL

7 CONCLUSION

INTRODUCTION

About Adani Group

7

MATIN VOHRA

Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder

The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007

To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus

Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider

8

MATIN VOHRA

About Mundra Port

9

MATIN VOHRA

The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country

With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port

Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency

With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo

PORTS STRENGTH

Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895

10

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

REPORT

ON

MUNDRA PORT amp SEZ Ltd

(ADANI GROUPS)

5

MATIN VOHRA

ADANI GROUPS

MUNDRA PORT

[09-12-2009]

INDEX

6

MATIN VOHRA

SRNO PARTICULAR PAGE NO

1 INTRODUCTION

11 About Adani Group12 About Mundra Port

13 Strength of Mundra Port14 Location of Port

2 ORGANISATION Values amp STRUCTURE

11 Vision amp Mission12 Structure of Management

3 HUMAN RESOURCE MANAGEMENT

4 FINANCIAL

5 FUTURE PLANS

6 FACILITIES

1-CARGO

2- TERMINAL

7 CONCLUSION

INTRODUCTION

About Adani Group

7

MATIN VOHRA

Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder

The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007

To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus

Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider

8

MATIN VOHRA

About Mundra Port

9

MATIN VOHRA

The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country

With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port

Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency

With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo

PORTS STRENGTH

Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895

10

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

ADANI GROUPS

MUNDRA PORT

[09-12-2009]

INDEX

6

MATIN VOHRA

SRNO PARTICULAR PAGE NO

1 INTRODUCTION

11 About Adani Group12 About Mundra Port

13 Strength of Mundra Port14 Location of Port

2 ORGANISATION Values amp STRUCTURE

11 Vision amp Mission12 Structure of Management

3 HUMAN RESOURCE MANAGEMENT

4 FINANCIAL

5 FUTURE PLANS

6 FACILITIES

1-CARGO

2- TERMINAL

7 CONCLUSION

INTRODUCTION

About Adani Group

7

MATIN VOHRA

Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder

The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007

To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus

Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider

8

MATIN VOHRA

About Mundra Port

9

MATIN VOHRA

The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country

With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port

Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency

With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo

PORTS STRENGTH

Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895

10

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

SRNO PARTICULAR PAGE NO

1 INTRODUCTION

11 About Adani Group12 About Mundra Port

13 Strength of Mundra Port14 Location of Port

2 ORGANISATION Values amp STRUCTURE

11 Vision amp Mission12 Structure of Management

3 HUMAN RESOURCE MANAGEMENT

4 FINANCIAL

5 FUTURE PLANS

6 FACILITIES

1-CARGO

2- TERMINAL

7 CONCLUSION

INTRODUCTION

About Adani Group

7

MATIN VOHRA

Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder

The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007

To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus

Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider

8

MATIN VOHRA

About Mundra Port

9

MATIN VOHRA

The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country

With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port

Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency

With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo

PORTS STRENGTH

Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895

10

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Mundra port and Special Economic Zone ltd is promoted by the Adani Group The Adani group started as a trading house in 1988 The Adani group is one of Indiarsquos fastest growing business houses Form being a trusted trading house the group has grown over the last two decades to become a conglomerate with diverse ventures spanning commodity trading and the development of infrastructure amp energy Our core values of trust courage amp innovation our ability to identify opportunities amp capitalize on them amp over success at building competencies by synergizing expertise are the factors that have driven our growth Our mission is to acquire development assimilate amp manage knowledge Which can be applied across our business interests for the benefit of stakeholder

The entire business of the group is organized under two companies is organized under two companies Adani enterprises ltd amp Mundra port amp SEZ both companies are listed on the national stock exchange of India (NSE) ampthe Bombay stock exchange (BSE) together they had a market capitalization of over In 790 billion (As per closing prices on December 31 2007) marketing the largest business group by market capitalization as on dec 31 2007

To evolve as an international caliber business port on the foundations of technological excellence state of the art back up infrastructure and logistic and a competitive customer focus

Mr Gautams Adani is the board of Director ampchairman ampfounded of the Adani group under this leadership Adani group has emerged as a diversified conglomerate with interest in information trading infrastructure development power generation ampdistribution development of special Economic zone distribution trading ampbusiness process outsourcing His unparallel expertise in international trade solution oriented approaches Innovation amp Endurance in on increasingly competitive amp rapidly expanding trading market has seen the Adani group metamorphose itself from a trading house to UN infrastructure builderamp basic utility provider

8

MATIN VOHRA

About Mundra Port

9

MATIN VOHRA

The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country

With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port

Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency

With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo

PORTS STRENGTH

Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895

10

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

About Mundra Port

9

MATIN VOHRA

The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country

With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port

Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency

With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo

PORTS STRENGTH

Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895

10

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

The history of India maritime is older than even most of the ancient civilizations of the world In the older days the ports in India were centers of intense business activity and defined maritime routes of global trade

Mundra port inherits the legacy of more than 4000 years of Indian maritime glory Today it is steadily marching ahead with the development of state of the art facilities at the deepest all weather multipurpose on the western coast of the country

With integrated development philosophy that leverages the power of modern technology and advanced management techniques Mundra port is on the path to become a new generation world class port

Worlds best regarded specific list consulting groups form UK Netherlands amp Australia besides maritime experts of India have contributed in developing key elements of the port through navigational studies wave studies hydrological studies conceptual plans front amp detailed engineering mechanized cargo handling systems and master plan for 2025 this collaborative strength helps us in meeting the highest international norms of performance technology safety quality and efficiency

With the help of such renowned consultants Mundra port has created excellent infrastructure to handle bulk break bulk dry - liquid amp container cargo

PORTS STRENGTH

Mundra port located in the gulf of Kutch in Gujarat is an all either round the clock round the year multipurpose port with a total quay length of 895

10

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

meters the port has four (4) berths ranging from 180 to 225 meters in length and 31 meters in width besides an 85 meters barge berth for handling a wide variety of cargo These berths can easily handle 9 million tons of cargo per annum on the existing infrastructure facilities

One of the deepest ports on the coast line of India blessed with a natural draft of 16 meters amp capable of berthing capsizes vessels unto 150000 dwt

Proximity to northern and western hinterland of the country which greatest over 4200 of the total international trade of India Mundra port is over 180 kms closer to Delhi than Mumbai connected to NH8 of the national highway net work

Linked to the national railway grid through a self developed 64 kms long railway link capable of handling 24 rakes per day Can area of 5000 acres available for further developing the port back up related infrastructural facilities

The port has implemented the IPMS as a single window port operation software which caters to all the needs if the port operations The IPMS system is best suited to real time operation reducing the vessel turnaround time increasing efficiency of cargo handling which results in lower operational cost if computerized the dry bulk and general cargo operations of the cargo terminal

LOCATION OF PORT

Change into TEXT

11

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Mundra port

Navinal Island Mundra - 370421

Dist - Kutch

Port office

PO No1 Mundra - 370421 Kutch

Tel + 91-2838-288201-8

Fax + 91-2138-282810-240

Register office Adani house

Nr Mithakali circle

Navarangpura Ahmadabad - 388009

India (079) 6565555

Vision

To be a globally preferred business associate mdash an entrepreneurial organization having

responsible concern for employees society ecology and stakeholder value

12

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Entrepreneurial - We shall think innovatively in all aspects of our business spanning the

gamut of technological and commercial practices

Preferred Business Associate - We shall strive to generate optimum value for all our

associates through constant innovation and adoption of universal best practices

Responsible Concern ndash We shall harmonize all our actions and reactions with the global

environment and actively work to reduce the load on the environment

Mission

Acquire develop assimilate and manage knowledge - We shall actively seek to become

experts in our chosen domains

Apply knowledge across our businesses ndash We shall apply our domain expertise across

businesses to deliver optimum value to our stakeholders

Profitably ndash We shall be guided by the ldquoProfit Motiverdquo Generating respectable tangible

as well as intangible profits will ensure allocation of resources for developing

assimilating and managing expertise

ORGANISATION STRUCTRE

MD (Gautam Adani) CFO

13

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Coo (chief operation officer)

VP vice president

GM

Manager

Deputy Manager

Assistant Manager

Senior officer

Officer

Jr Officer

Supervisor

Operator

Technician

14

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

MUNDRA SEZ

BENEFITS AVAILABLE TO SEZ UNITS

SEZs offer a host of benefits that facilitate operations for in-zone industrial

units Besides the Government of India benefits the Gujarat government has

also designed a policy that offers added incentives to the in-SEZ industrial

units The SEZ at Mundra will be spread over 100 Square kilometers providing

excellent flexibility in are as follow

Single Window Clearance for statutory requirements

Waiver of routine Customs examination of imports and exports

Clearance of Export consignments on self-certification

100 FDI permitted through the automatic approval route except the

negative list

Relaxed labour policy specifically for SEZ units (Applicable only in

Gujarat)

Freedom to realize and repatriate export proceeds within 12 months

No limit on quantum of DTA sales

Foreign investments allowed for items generally reserved for the Small

Scale sector Contract manufacturing permitted with units outside the

SEZ or in other SEZs

TAXES BENEFITS

15

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

MSEZ amp other SEZ units can avail the exemption on taxes which would

otherwise be implemented on the general business units The following are the

tax benefits which are enjoy by the SEZ

Direct Tax Benefits ndash Income Tax

100 exemption for the first 5 years amp 50 exemption for the sixth

to tenth (next 5) years

50 exemption on the ploughed back profits for an additional 5

years after ten years

Exemption from Minimum Alternate Tax

Indirect Tax Benefits - Perennial exemption in all taxes including

Excise Duty

Custom Duty

Service Tax

Value Added Tax (VAT)

Stamp Duty Lease Tax

Entry Tax and various other State levies that would otherwise be

applicable on operations Domestic Tariff Area (DTA) supplier is

eligible for export benefits on SEZ sales making the sourcing cost

competitive

16

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

External Commercial Borrowings up to US $ 500 Million without

any specific approvals Cost competitive financing can be availed

from Offshore Banking Units (OBUs)

17

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF Ferguson study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

18

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Perit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

19

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

20

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

STORAGE FACILITIES

The storage facilities at Mundra SEZs are as follow

26000 sq m of open storage alongside rail siding

Wheat cleaning facility with a capacity of 1200 MT day

8 weighbridges for dry cargo

880000 sq m of well demarcated open storage space for steel

sheets plate coils scrap clinker salt coal coke bentonite etc

21 closed godowns ad measuring 137000 sq m for wheat rice

sugar deoiled cakes (DOC) fertilizer fertilizer raw materials

(FRM) etc

21

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Port Operations

MK Padia ndash Sr VP (Operations)

A port is a safe station for vessels It is a place from which vessels start and

at which they finish their voyages A port is a gateway to the land from the sea

and from the sea to the land

The importance of a port can be measured by a careful consideration of

the following points

(1) The number of ship visiting a port in a year

(2) The gross registered tonnage of ship entering the port in a year

(3) The goods handled ie export and import carried through a port

(4) Value of goods handled

(5) Earnings of a port

Classification of port

(1) Commercial ports

(2) Passenger ports

(3) Tans-shipment ports

(4) Enter pot ports

(5) Free ports

22

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

(6) Po of call and Bunkering ports

(7) Naval ports

Ports in India

Bombay Calcutta Cochin Kandla Madras New Mangalore Visakhapatnam

Paradeep Marmugao Tuticorin Nhavasheva

Mundra Ports operations cover providing detailed information such as

schedules tariffs trade notices weather and tidal information etc Our robust

IT support eases decision making with the aid of top-of-the-line software

applications We are also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage

23

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

IT SUPPORT

Mundra Port aims at seamless integration of its business operations and

has opted for an ERP platform developed by SAP the SAP based ERP is fully

operational now In addition to ERP we has also opted for industry and trade

specific software solutions which provide real time information and help in

improving decision making process and in turn lead to efficient port operation

Integrated Port Management System (IPMS) The port has implemented

the IPMS as Single Window port operation software The IPMS tracks port

operations in real time which in turn improves the efficiency of port

operations by optimizing the vessel turnaround time and cargo handling This

in turn leads to competitive operational costs IPMS cover Dry Bulk Liquid

Bulk and General Cargo operations of the cargo terminal

Executive Information System (COGNOS Tools) Through this system

information from all the areas of the port is summarized and presented in a

suitable form to help the port management in taking effective decisions It is a

front end tool and utilizes the data information generated by IPMS

We have also developed capabilities to provide data related to weather

and tidal charts for providing directional guidance to port users

24

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

FIRE SERVICES

Fire Services at Mundra Port and Special Economic Zone Ltd(MPSEZ) are

equipped with state of the art fire fighting facilities The fire services are

manned by highly skilled and trained fire professionals capable of handling

diverse emergencies

The Port has been divided in to five zones and each zone has dedicated

fire fighting systems and is manned round the clock for quick response Fire

personnel are posted at all the critical and hazardous area The Fire Services

ensures safe work culture by implementation and monitoring of work permit

system Two mobile fire fighting units with rescue and fire fighting equipments

are available on standby at the Central Fire Station to meet any emergency

situation inside and outside the port premises The Central Fire Control Room

monitors and co-ordinates all fire related emergencies and functions

Mundra Port Fire Services also participates in activities related to

community development they impart fire and rescue training to residents of

neighboring villages schools etc in collaboration with Gujarat State Disaster

Management Authority (GSDMA) The Mundra Port fire services often help by

sending its fire tenders and crews to extinguish major fire and carry out rescue

operations in the nearby industries and villages

25

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

SUPPORT SERVICE AT MUNDRA PORT

BUNKERING

The Adani Group promoters of the Mundra Port runs Adani

Bunkering Services which offers all grades of fuel oil and gas oil as per

ISO specification at globally competitive price The advantages of

bunkering at Mundra Port are as follows

Compliance with MARPOL Annex VI requirements

Services offered are at par with International Standards by virtue of two

owned-barges and oil terminal inside Mundra Port

ISO 9001-2000 accredited Bunker Supply Chain Management ensures the

quality of bunker fuels

Our internationally acclaimed 24x7 environment-friendly services ensure

meeting bunker fuel requirements in time

Two dock lines of 24rdquo and 12rdquo for discharge of Cargo loading of barges

and Bunker supply

Besides Mundra Port Adanirsquos bunkering facilities can be provided at

Kandla Sikka Jamnagar and Vadinar

Road Tank Wagon supplies are available for alongside jetties

26

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Adani Bunkering has procured orders for other Indian Ports such as

Mumbai JNPT Goa Cochin Haldia Chennai Visage and New

Mangalore

TUGS

Mundra has its own fleet of eight high powered tugs that provide

navigational assistance to large ships The tugs are capable of 57 ton

Bollard pull and equipped with fire fighting facilities

CUSTOM BANKING

Customs establishment for statutory clearances

MPSEZ Container Terminal under SEZ customs amp Nationalized and

private banks inside port limits

27

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

LOGISTIC CONNECTIVITY

Mundra is situated in the Kutch district of Gujarat 65 km from Bhuj and 350

km from Ahmadabad It is well connected to the rest of Indians by

RAIL

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

The port has 7 railway sidings and two dedicated diesel locomotives

It can handle double stack container trains

A 64 km private railway line has been developed which connects the port

with the national network at Adipur Adipur falls on the broad gauge

from Mumbai to Bhuj Adani also has equity stakes in the Kutch Rail

Company Ltd (KRCL) a project by the Indian railways to shorten the

distance between the northern hinterland (including Delhi and

commercially important cities like Ludhiana) and Mundra Port by

providing a broad gauge connection between Palanpur and Adipur

28

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

ROAD

Well linked to the National Highway grid by NH8ANH 15 and

state highway

AIR

Fully function Aerodrome at Mundra to facilitate landing of

private jets

Two commercial airports within an hourrsquos drive from Mundra

29

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

CARGO HANDLING amp STOGE

(A) Dry cargo (B) Liquid Cargo

1 Uricl 1Edible Oil

2 Fertilizer 2Petrol

3 DAP 3Diesel

4 Sugar 4Kerosene

5 Wheat 5Asian Gas

6 Rice 6Ethanol

7 Peas

8 Horse Gram

9 Green Gram

10 Coal

11 Steel Products

12 Pipe

13 Blade

14 Salt

30

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

DRY CARGO DETAIL

Well designed and develop closed as well as open storage area for efficient and safe handling of dry cargo commodity Some of the salient points of dry cargo handling facilities at Mundra area

70000 sqmeters of closed storage space with a storage capacity of 170000 MT for commodities like wheat rice sugar fertilizer etc

325000 sqmeters of well demarcated open area in the form of concretehardstand Kutch plots with a storage capacity of 700000 MT for commodities like Betonies Bauxite steel sheets coils pipes linker salt coal etc

State of the art integrating mechanized bulk handling system unparalleled at any other port in the country

The export system comprises bleeding lines export conveyor belt and ship loader with loading rate of 1000 tons per hour

Import system comprises two mobile harbor cranes with Hoppers and import conveyor with a capacity of 1500 TPH designed to handle a wide variety of cargo

Wheat cleaning facility of 12000 MT per day and synchronized with the export conveyor with a capacity of clean wheat for shipment

Rice storing and grading facility of 500MT per day Mundra port creates a record handling highest number of rakes in the month of January 2007 It

31

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

handled 268 rakes Including the container rakes handled by MICI in the month of January 2007 the figure reaches to 346 rakes Out of these 213 rakes were only of wheat discount

LIQUID CARGO

Mundra port offers one of the largest liquid tank farm storage areas inside any port in the country coupled with the most efficient bank up infrastructure the port offers excellent to handle liquid cargo handling at Mundra area

Seven 35 km long liquid pipelines 8 to 24 in diameter connect berths to the tanks

Pipelines with imported cup pigging system ensure smooth blow of cargo between marine terminal and storage area52 tanks with a total capacity of 27100 kiloliters for storing edible oil chemicals glass ABC petroleum product and Bitumen

Provision for heating in selected tanks for storing specific cargo54 loading buys with sophisticated volume dispatch system ensure no loss capability Fully computerized inventory management system with connectivity to weigh bridges provides accuracy as well as speed

32

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

HUMAN RESOURCES MANAGEMENT

The application covers mainly the job recruitment organization management performance management stem event management payroll and reports related to man resources activity of the port

RM is a management function that helps managers recruit select train and develop member for an organization management is a process which involves team work for the attainment of a definite goal

In these days of global competition the importance of human resources has increased considerably The staffing function of human resource management includes recruiting selecting promoting and transfer dismissal training and development wages and other incentive system welfare activities and representatives of workers in the management etc

33

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

MICTL-A WORLD CLASS CONTAINER TREMINAL

Rapidly growing Indian container traffic especially in the Northern and Western States of India inspired Mundra port to up a state of the art container terminal for super port penamax vessels caeying 6000 TEUS

Mundra port international container terminal limited capable of handling more than 12 million TEUs per annual is designed to grow container traffic Back up infrastructural facilities have been developed for the area of 38 hectares for the container yard rail operation

Minimum berth of 175 meters a long side quay port panama and super port panamax vessels All weather cargo handling and ship movements A maximum distance of 185 kms of approach channel 632 meters of quay length already developed with a through put potential of 12 million TEUs Container yard with 5300 ground slots

Container yard area adjacent to the quay wall direct in terminal mail connection in port container freight station

Quay length to be increased to 1100 meters along with 10800 ground slots in the second phase with a though put potential of 25 million TEUs

34

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

PORTS SERVICES

Some of the services are provided by this port are is truly a single window clearance port that result in providing most efficient operation to the customer

Mundra port is a comprehensive service provider with state of the art facilities which mechanized bulk handling

There is also providing packaging of cargo The other services are liquid tank farm area

Closed and open storage for bulk cargo

Cleaning and sorting of cereals

Privately developed road rail network and organization own air ship

There is communication links including VSAT connectivity contents the port and it office in India enabling quick response to customers

Also see at Yagalpur Sinugra Khedoi Loveriya Chandiya Chandroda Mindiyana Shinae Adipur Gandhidham Bhuj Anjar Kandla Mundra port

Full service customer establishments on the port premises facilitated easy and quick statutory clearance Buck up DG power in addition to grid power ensures power round the year

Well planned safety equipment and system ensure hazard Free operation management at the fort

35

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

The safety future include compressed rubber fenderian system indignant fire control installations proximity suits portable extinguishers Ambulance breathing APPARATUS sets form tender etc

FINANCIAL

The month of January 2007 has provide to be a boon for the port as it went on setting record upon record and the latest was the highest cargo handling in a month Mundra port handled 710 lacs MTs of cargo through rail 1245 lacs MTs of dry liquid cargo and 549 lacs MTs of cured at its SPM

Mundra port and sez Itd chartered another record by handling highest 117 number of vessels in the month of January 2007 including Mundra port MICI

19th of March 2007 was a day when history was written wt Mundra port when it handled 27900 MTs of cooking coal in a day

Price bank of Rs400 to 440 per equity share of face value Rs10 each public issue size 40250000 equity share of Rs10 maximum subscription amt for retail investor Rs100000

The ports were also implemented oracle financials and tally to meet the need of its day to day financial consolidations This system is seamlessly integrated with other systems with on line interfaces

Through its system information from all the areas of the fort is summarized and presented in a suitable form to help the port management in taking effective decisions

Mundra port vision to evolve as a facility ranking on international bench marks An AF fergusion study predicts cargo traffic at Mundra port to grow around 40-58 million MT by 2007-28 The infrastructural facilities in his form of storage space and equipment are being continuously added at the port The future

36

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

plans are an extension of Mundra ports ambitious growth map of charting new frontiers of growth and excellence for developing business

Mundra port is participating in a project for converting the existing MG rail from Ghandhidham to Palanpur to BG which could reduce the distance to North India hinterland by 144 kms

Master plan 2025 for Mundra port envisages 4000 meters of berthing length with development of back up facilities in an area of 5000 acres a 150 meter wide land corridor consisting of rail road amp pipeline to connectivity to port

Mundra port has already signed with Indian Oil Corporation and Hindustan Permit Corporation Ltd for selling up single point mooring system at Mundra port handling crude oil Mundra port has potential to accommodate at total of 4 SPMS and the available draft of 32 meters is sufficient to handle very large crude carriers

The Adani group also plans to set up a special economic zone in the proximity of the port The proposed SEZ is being cancelled on international standards and is envisaged on developed in an area of over 10000 hectares

37

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

FUTURE PLANS

The development plans at Mundra port are concentrated primarily in the areas of advanced cargo handling additional berths logistic support system and power generation

The port management has ambitious plans of increasing capacity from 10 million MT to 50 million MT by 2010

1 Pure car carrierpure car truck carrier (pccpctc) berth with huge car parking space

2 Additional of 2 more crossing station along the 64 km privately railway line to increase the rakes handling capacity from 32 to 40 rakes a day

3 Double lining of the 64 km railway line in phased manner

4 Construction of 4 km of additional quay length (berth basin consisting of 14 additional berths) for handling largest bulk and container vessels that being built

5 Construction of dedicated LNG berth

6 Construction of 4x330 MW and 2x660 MW terminal power plants has already begun

38

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

CONCLUSION

The Mundra port is providing services of Export amp Import of the various good considering dry cargos Containers Liquid goods cargo export import in the port system They are very good operation of shipping cargo Their staff member workers their services are very useful to all Their goods performance effect is quick or direct to the countries growth Mundra have a resolvable product range to cargo handling It is achieving the goals Thus

company to other shipping cargo it is very good to other

There is for the good performance the economy of the country is increase the Mundra have a research in development center the worker work very efficiently in this Mundra port

The special economic zone is growing more amp more for other port

39

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

PSL LTD

REPORT

[08-12-2009]

40

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

PSL LIMITED

Varsana Anjar Kutch Gujarat East of NH -8 A Kandla Road

Gandhidham Kutch Gujarat

Plot No4 amp 5 Sector 12B Kandla RoadGandhidham Kutch Gujarat

41

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

INDEX

SRNO TOPICS PAGENO

1 Introduction

2 General Information

3 Departments

1 Production Department

2 Marketing Department

3 Finance Department

4 HRM Department

4 Export Import Procedure

5 Conclusion

42

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

INTRODUCTION

PSL Limited (PSL) is the largest manufacturer of high-grade large diameterHelical Submerged Arc Welded (HSAW) pipes in India The CompanyManufactures and supplies pipes certified to API (American PetroleumInstitute) standards for oil gas and water transmission as well as structuralAnd piling applications for both onshore and offshore sector

PSL is one of the largest pipe manufacturers in Asia with 12 Pipe Mills at strategically coast based locations in Chennai Kandla Vishakhapatnam Ahmadabad Jaipur Daman and Sharjah with an annual capacity exceeding 1175000 MT

Other business segments that PSL caters to include pipes coating inductionPipe bending and sacrificial anode manufacturing PSL has over the yearsSuccessfully demonstrated its ability to simultaneously manage multipleAssignments in a qualitatively and timely manner both within and outsideThe country

43

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

General Information

Chairman Shri Y P Punj

Managing Director Shri Ashok Punj

Directors

Shri Alok Punj

Shri M M Mathur

Shri G S Sauhta

Shri R K Bahri

Shri D N Sehgal

Shri Prakash V Apte

Shri N C Sharma

Shri Ashok Sharma

Shri Harry H Shourie

Shri S P Bhatia

Shri C K Goel

Shri Paresh J Shah

Shri Harsh Pateria

44

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Director and Company Secretary

Shri G Gehani

STATUTORY AUDITORS

Suresh C Mathur amp Co

Chartered AccountantsNew Delhi

SHARE TRANSFER AGENTS

Karvy Computershare Private Limited

17 - 24 Vittal Rao Nagar Madhapur

Hyderabad - 500 081

SUBSIDIARY COMPANIES

PSL Corrosion Control Services Limited

Survey No 3772 Zari Cause Way Road

Kachigam Daman

Union Territory of Daman amp Diu

Pipeline Systems Limited

Co IFS IFS Court 28 Cybercity

Ebene Mauritius

PSL USA INC

Corporation Trust Center 1209 Orange Street

Wilmington New Castle 19801

Delaware USA

45

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

PRINCIPAL BANKERS

ICICI Bank Limited

State Bank of India

Bank of Baroda

Standard Chartered Bank

Export Import Bank of India

IDBI Bank Limited

Axis Bank Limited

BNP Paribas

State Bank of Patiala

State Bank of Hyderabad

Indian Overseas Bank

Union Bank of India

ING Vysya Bank Limited

Yes Bank Limited

DBS Bank Limited

Deutsche Bank

Indian Bank

Kotak Mahindra Bank

Development Credit Bank

REGISTERED OFFICE

Kachigam Daman

Union Territory of Daman amp Diu - 396 210

CORPORATE OFFICE

46

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

LEGAL amp SECRETARIAL OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

MARKETING OFFICES

- In Western India

PSL Towers

615 Makwana Road Marol Andheri ( E )

Mumbai - 400 059

- In Northern India

ldquoPSL HOUSErdquo

B-96 Greater Kailash ndash I

New Delhi - 110 048

- In Southern India

Meridian House 82 Montieth Lane

Egmore Chennai - 600008

PROJECTS OFFICE

3rd Floor lsquoPunj Housersquo

M-13 A Connaught Circus

New Delhi - 110 001

47

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

VISION

THE VISION OF THE PSL LIMITED IS AS UNDERBeing the global supplier of choice for the energy infrastructure sector industry by 2020

MISSION

In its commitment to excellence PSL will constantly optimize the utilization of its resources to ensure the highest quality standards of its products services and solutions in the industry by a strategic investment and focus on The latest technological trends thereby creating value for stakeholders ndash clients customers shareholders and employees

A continued investment in Research amp Development Building and nurturing engineering talent

Developing a culture that fosters teamwork and enhances leadership abilities

Forming strategic alliances in order to move up a diversified value chain within the energy industry

The highest standards of corporate conduct and ethics

Ensuring the highest levels of customer satisfaction for every customer across geography and scale

48

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

DEPARTMENT AT PSL LTD

Administration Office

Pipe Mill-V1

Store-V1

QaQc Plant Office

YardAuto Department

CML Plant

Pipe MILL-NC

Store-NC

Laboratory

QAQC Main Office

49

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Pro

QUALITY POLICY

PSL Limited which is into manufacturing of steel pipes pipe mills and

machinery as well as anticorrosive coating of steel pipes are committed to supply

products on time and at competitive prices to the total satisfaction of customers

stated and implied needs while complying with relevant statutory and legal

requirements

In our integrated efforts we commit to continually improve quality of

products prevent pollution and reduce occupational health and safety hazards in

our process

We commit ourselves to supply defective-free product at competitive price

and in time To satisfy our customer and continuously improve the effectiveness

of the Quality System Management

Objectives

Training of personal at all levels

Bring out quality awareness in each activity performed by all employs

Continuous improvement in process Technology To reduce defecit cost

amp work

50

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

PRODUCTION DEPARTMENT

Production department is a heart of the company It is the most

important department of the company The production function of a

business is concerned with the creation of a product or service required to

satisfy customer needs wants and desire

Pipe Manufacturing (HSAW)

Manufacture large diameter (18 to 120 inches) HSAW pipes of varying

thickness between 5 mm to 25 mm

HSAW pipes are extensively used for the transmission of oil gas and water

Key projects executed

Melut Basin Oil Development- Sudan Dolphin Energy Barmer lift water supply

Vijaipur- Dadri Bawana pipeline

Pipe Coatings

Provide pipe coating services which include pipe corrosion protection

3 Layer PolyethyleneFusion bonded epoxy coating Coal Tar Enamel

Coating Concrete Weight Coating Internal Coating etc

Key projects executed

Baherika Naka Project Hazira-Bijapur Jagdhispur

Ancillary Products and Services

Induction bends

Capacity to manufacture pipe bends of various diameter up to 48 inches

Sacrificial anodes

Capacity to manufacture in excess of 1500 tape of sacrificial anodes

51

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Reinforcement bar (rebar) coating

Prevents corroding before they are put to use in construction

Manufacturing of turnkey HSAW plant and machinery

Design and manufacture machinery and equipment catering to the pipeline industry

52

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

H-SAW PIPE MANUFACTURING

Large diameter API IS Grade pipes with a diameter ranges from 406 mm to 3175 mm wall

thickness up to 25 mm length up to 125 meter and up to and including API 5L X ndash 80 are

manufactured at Varsana H-Saw pipe mills Annual mill capacity is around 75000 MT per mill

RAW MATERIALS

Our results of operations are subject to the availability cost and quality of our key material

ie HR Coils Flux and Filler Wire Coating Materials amp Other materials is required at

the time of process of pipes

Cost Effective Transportation through pipelines is cost effective as compared to the

other means of transportation such as roadways or railways

Stability Transportation through pipelines is stable as compared to the other means of

Transportation They generally have a life of around 15 to 20 years once the pipeline network

is being set-up

Safety Transportation of inflammable items like oil and gas is safer in pipes as compared to

the other means of transportation like roadways or railways

No pilferage They overcome the problem of pilferage as compared to the other means of

transportation There is nil or negligible threat of transit loss in case of transportation through

pipelines

Eco-friendly Transportation through pipelines is eco-friendly as there are no emission of

gases and pollutants in the atmosphere as compared to the other means of transportation

Efficient land use Pipelines are generally underground and there is no disturbance of

land due to their usage

Multi-product transportation More than one product can be transported through

the same pipeline without purgingcleaning procedures

Supply unaffected Transportation through pipelines are unaffected by strikes cyclones

floods etc which may affect other means of transportation

53

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Process of HSAW

Spiral pipes are produced by shaping HR coils into spiral form

and continuously welding the seam inside and outside

Various pipe diameters can be produced from the same strip width by changing the forming

angle

Forming stand unit HR coil to make it straight

Welding stations

Cutting and clining

Quality control

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Testing Facility

54

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Non-destructive Testing Destructive Testing

Hydro-static Test

Online Ultrasonic Testing for HR Coil

Off-line Ultrasonic Testing for pipes

Real time Radiography

Film Radiography

Magnetic Particle Inspection

Visual Dimensional Inspection

Hardness Test

Charpy lsquoVrsquo Notch Impact Test

Drop Weight Tear Test

Hydrogen Induced Cracking

Sulphide Stress Cracking (Four point Bent-

Beam method amp Tensile Test method)

Tensile Test

Guided Bend Test

Micro amp Macro Vickers Hardness Test

Micro Examination

The making of Spiral Weld pipes

Hot rolled Coil strip is mounted into the straightening machine The strip is positioned to the

correct helix angle Before passing the strip through the leading and trailing ends of the

incoming and already inserted coil strip respectively are welded together The edges are then

machined simultaneously on both sides by an edge miller In the forming section a 3-roller

bending device bends the strip helically into a cylindrical pipe Then the longitudinal edges of

the incoming strip are brought into low point contact and the resulting butt joint is

continuously welded externally after a half-turn of the pipe Finally it is cut off to the desired

length with a plasma torch

HELICAL TWO STEP TECHNOLOGY PIPE MANUFACTURING

55

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Large diameter API Grade pipes with a diameter range of 457 mm to 1524 mm wall

thickness up to 25 mm length up to 18 meter and up to and including API 5L X ndash 80 are

manufactured at Helical Two Step Pipe mill Varsana 2 Annual plant capacity is around 3

00000 MT depending upon order mix

Helical Two Step Technology Pipe mill consisting of the following steps

First Step Pipe Formation Unit

Coil opening operation

Coil flattening operation

Welding coil to coil butt ends for continuity

Pipe forming operation

Continuous tack welding of the formed pipe

Pipe end cutting operation

Second Step Final Welding

Pipe is then discharged to ldquoFinal Welding Stationrdquo Final Welding Station has 3 numbers

Welding lines

Following operation is undertaken here

Continuous internal welding

The duly welded pipe is discharged from the welding line for processing of the pipe ends

56

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

End beveling station

Hydro-testing station for testing of each pipe

UT Ultrasonic testing station for NDT weld flaw detection

End X-ray continuous radiography

Finishing station and final inspection station

Pipe manufacturing capabilities using different technologies

Pipes LSAW HSAW

Diameter (inches) 16-56 18-120

Thickness (mm) 48-38 5-25

Pressure High High

PIPE COATING

On the forefront of mechanized yard coating in India and abroad PSLrsquos strength lies in its commitment to quality and ability to implement diverse projects efficiently

57

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Equipped to provide the best in yard coating for large onshore and offshore projects PSL has over the years successfully executed multiple coating assignments simultaneously while adhering to its commitment to quality and project completion deadlines

Range of coating services available for the most stringent of pipe-coating applications

bull POLYETHYLENE (PE)

DETAIL

bull COAL TAR ENAMEL (CTE)

DETAIL

bull FUSION-BONDED EPOXY (FBE)

bull CONCRETE WEIGHT COATING (CWC)

bull INTERNAL COATINGS

POLYETHYLENE

The process is characterized by applying three successive coating layers on

external steel surface after cleaning it to the SA 25 grade of Swedish standard SIS

055900

The first layer is a fusion-bonded epoxy powder (150 micron0150mm thick) by

electrostatic spraying guns on heated surface to a minimum of 190 degrees centigrade

or as recommended by the powder manufacturer

58

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

The second layer is adhesive (200 micron020mm) which is applied by lateral

extrusion over the epoxy layer when the epoxy powder is still in the polymerization

phase at a temperature of 210-230 degrees centigrade

The third layer of polyethylene (2200 micron22mm) is applied by lateral extrusion

on the adhesive layer at a temperature of 230-270 degrees centigrade and is adjusted

according to the requirement The pressure roller is used to prevent air entrapment in

the PE layer

COAL TAR ENAMEL

The coating system consists of applying a coat of coal-tar enamel having a

minimum thickness of 24 micron24mm over the primed pipe and one wrap of glass-

fiber mat

A second coat of coal-tar enamel having a minimum thickness of 2400

micron24mm follows this and wrap of glass-fiber mat followed immediately by an

outer-wrap of coal-tar impregnated glass fiber felt

The minimum thickness of coating (without the outer-wrap) is 4800 micron48mm

+- 1000mm When the protrusion of weld seam interferes with this thickness the

thickness of the coating above the weld seam should meet the specified thickness

FUSION-BONDED EPOXY

Fusion bonded epoxy coating offers a robust single-layer coating applied by using

electrostatic spray guns and which provides excellent adhesion flexibility and a marked

resistance to cathodic disbandment ndash even at elevated pipeline temperatures

CONCRETE WEIGHT COATING

Yard applied concrete coating following the impingement method is carried out over the Coal tar enamel coating (CTE) on the entire outer surface of the pipe up to a specified thickness It is applied at a high velocity against the external surface

59

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

of the pipe to produce a hard tight-adhering coating of the specified thickness and simultaneously wire -meshed

INTERNAL COATINGS

INTERNAL CEMENT MORTAR LINING

A mixture of cement mortar is typically used as protective interior lining of steel

pipe Applied centrifugally cement mortar lining provides a smooth dense finish that

protects the steel pipe from tuberculation and also affords a measure of corrosion

resistance Additionally the smooth interior surface of cement mortar lining provides a

high flow Cement mortar-lined steel water pipe is durable easily handled in the field

and can be repaired with minimal difficulty

MARKETING DEPARTMENT

International Marketing is finding out what customers want around the world and

then satisfying these wants better than other competitors both domestic and

international They observe that international marketing has dual aspects viz foreign

marketing and global marketing

According to Keegan ldquoglobal marketing is the process of focusing the

resource(people money and physical assets) and objectives of an organization on

global market opportunities and threatsrdquo

60

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

ldquoMarketing management is the process of planning and executive the conception

pricing promotion and distribution of ideas goods and service to greate exchange that

satisfy individual and organization objective market is formally carried out by the sales

managerrdquo

Customer ONGC (Oil amp Natural Gas Corporation Limited)

GAIL (Gail India Limited)

IOCL (Indian Oil Co-operation Limited)

DPCL (

Narmada Project

Majour Orders

Oil

1048708 Mundra-Bhatinda pipeline I INR 9355 mn

1048708 Mundra-Bhatinda pipeline II INR 4091 mn

1048708 Dadri Panipat pipeline INR 1656 mn

Gas

1048708 Vijaipur- Dadri Bawana pipeline INR 17272 mn

1048708 Vijaipur ndashDadri Bawana pipeline INR 1848 mn

1048708 Cagmeg SPA Algeria INR 731mn

Water

1048708 Barmer lift water supply INR 3080 mn

1048708 Indore Municipal Corporation INR 507 mn

Others

1048708 Indira Gandhi super thermal power INR 608 mn

1048708 Coimbatore Municipal Corporation INR 357 mn

1048708 Raghunanthur thermal power INR 141 mn

61

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

1048708 DJB Dwaraka water supply INR 233 mn

Special Problem in International Marketing

Political and Legal Difference

Economic Difference

Culture Difference

Difference in the Currency

Difference in the Language

Difference in the Marketing Infrastructure

Trade Restriction

High Costs of Distance

Difference in Trade Practice

MARKET SEGMENT

A firm has also to make a strategic decision about the segmentsegment of the

foreign market that it should enter

The segmentsegment that a firm may enter depends on a number of factor like the

firm related factors (the size and resource of the firm its product mix marketing

characteristics of the firm etc) product related factor (for example whether it is an

62

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

innovative product ) competition factor ( the strengths and weakness of the competitors

the extent of a competition in the different segment etc) and other market-related factor

like the size and characteristic of different segment growth prospect of different

segment etc

63

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Marketing Channel

In international marketing there are two sets of channels to be consideredviz the

channel between nation and the channel within a nation The decision about the

channel between nations pertains to the determination of the appropriate mode of

entering the overseas market This involves first of all the choice of the location of the

production base

Direct Exporting

As the name indicates direct export refers to the sale in the foreign market directly

by the manufacturer The manufacturer may make the sale directly to the foreign

customer or to a middle man or middle man located in the overseas market In both the

cases the export is direct-manufacturer does not use any independent middleman in

the channel between the home country and the overseas market

64

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

The Direct Exporting channels are as shown as under

PRODUCER

Importer Distributor Government State Buying Industries Department Organisation Buyers

Wholesalers Retailers Customer Joint Ventures

Licensing

Importers The importers who buy on their own account may sell the product to the

distributors industries and other institutional customer wholesaleretc

Distributors A distributor who buy directly from the exporter and holds large stocks of

a product has an exclusive right to sell the product in a particular area or to a particular

type of customer

Government Department In some countries government department buy large

quantities of certain goods often on a long-term basis These are generally essential

goods of mass consumption or use in government departments

State Buying Organization In some countries the import of goods are done by the

government organization like state trading organizations This was the case until

recently in the centrally planned economics In India imports of several commodities

are canalized ie only designated government agencies can import these goods

65

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Wholesalers Although wholesaler often buys from the importers or distributors there

are also wholesalers who buy directly from the exporter

Retailer Large retailer may buy directly from the exporters Department stores

supermarkets or other types of chain stores are among the most important direct retail

buyers Other retailers may depend on distributors or wholesalers

Joint-Ventures and LicensesFranchise A very important export marketing channel

that is growing in popularity is the collaborative arrangement between exporter and

foreign firm

Joint ventures ie enterprise in which both ownership and

management are shared by firms from two or more countries are very common

between firms from developed and developing countries

Indirect Exporting

There are two method are available for indirect exporting

(1) International marketing middleman and

(2) Co-operative organizations

International marketing middleman There are two important middleman- merchant and agent The basic distinction between the merchant and the agent is that the merchant takes title to the product he sells while the agent does not

(1) Merchants Export Merchant Export Trade Houses Trading Companies Export Drop Shipper

(2) Agent Brokers

Co-operative organizations The co-operative exporting organization which represents a cross between indirect and direct export carries on exporting activities on behalf of several producer and is partly under the administrative control of the manufacturers

There are two distinct types of co-operative international marketing organization (1) Piggyback marketing

(2)Export combinations

66

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Under Piggyback marketing also know as mother-Henning or company arrangement one manufacturer use its overseas distributor facilities to sell product of one or more other companycompanies as well as his own

As exporting comiation is more or less formal association of independent and competitive business firms which are organized for the purpose of export marketing for the mutual benefit

Competitive environment

The large diameter pipe industry in India and globally is highly competitive We face

Competition from both domestic and foreign manufacturers of both HSAW and LSAW pipes

while bidding for new contracts Among the organized sector we consider our three principal

competitors to be Welspun Gujarat Stahl Rohren Limited Jindal Saw Limited and Man

Industries Limited We sometimes face competition from the unorganized players but that is

mostly restricted to smaller orders in the water segment There are no unorganized players for

oil and gas pipelines since such pipes require API certification and have stringent quality norms

The break-up of our total income into exports and domestic is as stated below (Rs in millions) 2009 2008

Exports 71517 550643Domestic 3577397 1742468

67

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Finance Department

MrKRamanathan

Finance Officer Chief Finance Officer

Finance is regarded as the lifeblood of a business enterprise This is because in the modern

oriented economy finance is one of the basic foundations of all kinds of economics activities It

is the master key which provides aces to all the sources for being employed in manufacturing

activities It has rightly been said that business needs money to make more money

According to Solo man ldquoFinancial Management is concerned with the efficient use of an

important economics resources namely Capital Fundsrdquo

Classification of Sources of Finance

According to Period

(1) Long term sources viz shares debentures long term loans etc

(2) Short term sources viz advances from commercial bank public deposit

advances from customer and trade creditors etc

According to Ownership

(1) Own capital viz share capital retained earnings and surplus etc

(2) Borrowed capital such as debentures public deposits and loans etc

According to Sources of Generation

(1) Internal sources viz retained earnings depreciation funds etc

(2) External sources viz securities such as shares debentures loans etc

Basics Objectives (1) Maintenance of liquid assets (2) Maximization of profitability of

the firm (3) Share holder wealth maximizations rather than on profit maximizations

68

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Information relating to HRM

Human Resources Management is concerned with the people who work in the organization

to achieve the objectives of the organization It concerns with acquisitions of appropriate

human resources developing their skills and competencies motivating them for best

performance and ensuring their continued commitment to the organizations to achieve

organizations objectives This definition applies to all types of organizations eg industries

business government educations health or social welfare of the people

We are also subject to labor and employment laws which regulate the minimum wages

payable to employees maximum working hours additional payments for overtime work the

hiring and terminating of employees the engaging of contract labor health and safety of the

employees and work permits Failure to comply may result in pecuniary andor criminal liability

and adversely affect our business and financial condition

Objectives

(1) To provide create utilize and motivate employees to accomplish organizations goals

(2) To secure integration of individuals and groups in securing organizational effectiveness

(3) To create opportunities to provide facilities necessary motivate to individuals and groups

for their growth with the growth of organizations by trainange and development

compensations

(4) To provide attractive equitable incentives reward benefits social security measures to

ensure retention of competent employees

(5) To maintain high moral encourage value system and create environment of trust mutuality

of interest

(6) To provide opportunities for communication expressions participation appreciation

recognition and provide fair efficient leadership

69

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

(7) To create a sense and feeling of belongingness team spirit and encourage suggestions from

employees

(8) To ensure that there is no threat of unemployment inequities adopting a policy

recognizing merits and employee contribution and conditions for stability of employment

FUNCTIONS OF HRM

70

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

HRM OBJECTIVES Function to be Performed

Social (1) Legal compliance

(2) Benefits

(3) Union Management relations

Organizational (1) Human Resource Planning

Objectives (2) Selections Training

And Development

(3)Employee Relations

(4) Employee Evaluation Assessment

Appraisal

Functional objectives (1) Appraisal

(2)Placement

Personal objectives (1) Training amp Development

(Toward is employees) (2) Appraisal

(3) Assessment placement

(4)Compensation

71

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Retirement Benefits

Contributions to defined contribution schemes such as Provident Fund amp Family Pension

Fund all charged to the Profit amp Loss Account as incurred

Gratuity to employees is covered under the Group Gratuity cum Life

Assurance Scheme and superannuation to employees is covered under

Group Superannuation scheme of Life Insurance Corporation of India and

Annual contribution to such schemes is charged to Profit amp Loss Account

Accrued liability up to the date of Balance sheet is provided

For the year ended March 31 2009 provision for Employees Benefits

Amounting to Rs636 million towards Leave Encashment has been made to SBI

Life Insurance Co Ltd Mumbai

Employees

As at June 30 2009 we had 4014 employees of which 2200 worked in our plant sand

454 worked in our corporate headquarters and other administrative offices None of our

employees belongs to a union and we have not been subject to a strike or other material

labour disturbance

In addition to our employees we rely on contractors who engage on-site labourers for

performance of many of our unskilled operations We are registered as a principal employer

under the Contract Labour (Regulation and Abolition) Act 1970 and such registration is

required to be renewed periodically As at June 30 2009 we had 1360 contract labourers

working for us

The total remuneration of our employees includes a base salary bonuses and

allowances In addition to an employee contributing 12 of his or her salary into a provident

72

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

fund we also contribute an amount equal to 12 of that employeersquos base salary to the

provident fund

Human Resources has always been most valuable asset for PSL and the company constantly

seeks to attract and retain the best available talent Human resource management incorporates

a process driven approach that invests regularly in the training and development needs of its

employees through succession planning job rotation on the job training and extensive training

workshops and programs The company holds various employee engagement programs in order

to bolster employee morale inculcate a feeling of team work and create a mechanism to

recognize individual and team contributions to the organization The employee turnover for

many years at a stretch is adequate evidence of the successful operation of the aforesaid

philosophy of the Company With the work force of more than 2500 individuals comprising of

very well experienced staff and competent Executives at different levels virtually no industrial

problems are experienced by the Company at any of its Units

73

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

EXPORT PROCEDURE

Some preliminary steps have to be taken before an export transaction begins

IEC Number

Every person (whether an individual firm or company ) importing or exporting goods required

an Import-Export Code ( unless specifically exempted by the DGFT ) The IEC number is normally

allotted by the regional licensing authority

Membership-Cum-Registration

Membership of certain bodies will help the exporter in a number of ways There are specific

Export Promotion Councils for various productsproduct groups Members of EPC receive

different kinds of assistance and services in respect of the export business

Export will also benefit from membership of other organizations like India Trade Promotion

Organization (ITPO)

(a) Registration with EPCFIEO

(b) Registration with Sales Tax Authorities

Inquiry and Offer

An inquiry is a request from a perspective importer to be informed of the terms and

conditions of sale It may contain full details of the goods required their description catalogue

number or grades sizes weights or other distinguishing features time and method of delivery

etc

The offer made by the exporter is usually in the form of a Performa invoice This is an invoice

sent in advance to the buyer before the shipment is made and usually includes details of the

product to be supplied their quantity quality value including freight insurance and other

charges the method of payment the condition of sales etc Often buyer open letters of credit

74

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

on the basis of the Performa invoice It is therefore necessary to take approximate freight

charges on the higher side than on the lower

75

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Confirmation of Order

The confirmation of the order usually takes the form of a contract There is no hard and fast

rule for the terms that may be mentioned in an export contract However the contract should

contain details of goods their quantity quality price period period of deliveryshipment

packing and marking terns of payment licenses insurance documentary requirementetc

Export License

The export of some items are banned and some items controlled by means of licences

though many items are permitted to be exported freely Needless to say that exporter should

make sure that item sought to be exported is not one which falls in the banned list If the item

to be exported requires a license it is necessary to obtain it before finalizing the contract

Finance

If the exporter requires pre-shipment financial assistance he should take the necessary

steps to obtain it

Production Procurement

Once the order is confirmed the exporter should take necessary steps to ensure the timely

availability of the goods of the specifications required and execute the exporter order promptly

Shipping Space

As soon as the exporter order is confirmed the exporter should contract the shipping

companies which have selling for the port to which goods have sent and book the required

shipping space

Packing and Marking

Once the exporters are ready they are packed and marked properly If the buyer has

given instructions about packing and marking they should be followed accordingly The Bureau

of Indian Standard has prescribed packing standards for certain item Shipping companies also

give certain packing instructions especially for highly dangerous goods

76

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Quality Control and Pre-Shipment Inspection

Needless to say goods should be exported only after ensuring that they are of proper

quality If the quality of the goods exported is not satisfactory it will affect the image of not

only the exporter but of the whole nation The government has also taken some step in this

regard The Export Act 1963 empowers the government to issue a notification about the

commodities brought under the Compulsory Quality Control and Pre-Shipment Inspection

Scheme

Excise Clearance

As a matter of policy the government has granted excise duty exemption for export

product

Custom Formalities

Goods may be shipped out of India only after Custom clearance has been obtained For

this purpose the exporter should present the following documents to the customs authorities

are as under

(1) Shipping Bill

(2) Declaration regarding truth of statement made in the Shipping Bill

(3) Invoice

(4) GR Form

(5) Export License Quality Control Inspection Certificate (wherever required)

(6) Original contract wherever or correspondence leading to contract

(7) Contract registration certificate (wherever applicable)

(8) Letter of Credit

(9) Packing List

(10) AR-4 Form

(11) Any other documents

77

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Exchange Control Formalities

The exchange control regulations required all the exporter to

(a)Make a declaration on the prescribed form to the Collector of Customs that foreign

exchange representing the full export value of the goods has been or will be disposed of in

manner and within the period specified by the RBI

(b)Negotiate all shipping documents including those relating sales on consignment basis

through authorized dealers

(c) Receive payment by an approved method

(d) Surrender the foreign exchange received from export to the exchange control authority

through authorized dealer

Insurance

The goods that are exported may be subject to certain maritime perils The risks of such

perils may be covered under certain marine insurance Who should bear the cost of the

insurance depends on the terms of the sales For instance under the CIF term insurance is the

responsibility of the exporter

Marine Insurance in India is undertaken by the four subsidiaries of the General Insurance

Corporation of India The National Insurance Company The New India Assurance Company

The Oriented Fire and General Insurance Company and General Insurance Company

The ECGC covers certain export risks which are not covered by the general insurers

78

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

Shipping the Goods

Goods may be exported to foreign markets by sea air land road post and river

Negotiation of Documents

The set of negotiable documents usually consist of the following

Letter of Credit Commercial Invoice together with the packing slip GR-1 form Certificate of

Origin Marine Insurance Policy Bill of Lading

Export Incentives

If the exporter is entitled to any export incentives he should take the necessary steps to

realize it

Export Documents

Commercial Documents

The commercial documents are those which by customs of trade are required for

effecting physical transfer of goods and their title from the exporter to the importer and

the realization of export sale proceeds

14 out of the 16 commercial have been standardized and aligned to one another

Principal Export Documents

(1) Commercial Invoice

(2) Packing List

(3) Bill of Lading

(4) Combined of InspectionQuality Control (where required)

(5) Insurance Certificate Policy (In case of CIF export sales contract)

(6) Certificate of Origin

(7) Bills of Exchange and Shipment Advice

Auxiliary Documents

79

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits

MATIN VOHRA

The remaining 8 commercial document are known as the auxiliary

documents They are as follows

(1) Proforma Invoice

(2) Intimation for Inspection

(3) Shipping Instruction

(4) Insurance Declaration

(5) Shipping Order

(6) Mate Receipt

(7) Application for Certificate of Origin

(8) Letter to the Bank for CollectionNegotiation of Documents

Regulatory Documents

On an average there are 9 regulatory documents associated with the

preshipment stage of an export transaction are as follows

(1) Gate Pass Gate Pass II- Prescribed by Central Excise Authorities

(2) AR4AR4A Form-lsquoPrescribed by Central Excise Authorities

(3) Shipping BillBill of Export ndash Prescribed by Central Excise Authorities

For Export of goods

For Export of duty free goods

For Export of dutiable goods

For Export of goods under claim for duty drawback

(4) Export Application Dock Challan- Prescribed by Port Trust Port Trust

copy of Shipping Bill

(5) Receipt for payment of Port Charges

(6) Vehicles Ticket

(7) Exchange Control Declaration- Prescribed by RBI GRPP Forms

(8) Freight Payment Certificate

(9) Insurance Premium Payment Certificate

80

• Vision
• Mission
• Port Operations
• IT SUPPORT
• FIRE SERVICES
• SUPPORT SERVICE AT MUNDRA PORT
• BUNKERING
• TUGS
• CUSTOM BANKING
• MPSEZ Container Terminal under SEZ customs amp Nationalized and private banks inside port limits