Sail Project

Download Sail Project

Post on 27-Nov-2014




2 download

Embed Size (px)


<p>EXECUTIVE SUMMARYIn todays corporate and competitive world, it is mandatory to have highly efficient and effective workforce in the organization, so the same is possible, if we will adopt and implement the most effective and latest methods of Training and Development while preparing the workforce for the organization. Keeping the above fact in mind, the present report is prepared to give a deep insight to the present situation of Training and Development. The project focused on finding out the Effective Method of Training and Development. The stated objective of the study was further broken down to secondary objectives which aimed at finding information regarding the frequency of the training program to be designed with-in a year, usual methods of Training and development, length of training and development module, use of audio/visual aids etc. The exploratory research was carried out with 50 respondents with a set of 19 open ended questions. A survey was conducted in the corporate offices with the employee (Of Managerial Level) based on the questionnaire to know the situation. The exploratory findings helped us in determining the key factors which needed to be further explored for making training program more effective. Each of the questions was designed to satisfy at least one of the secondary objectives of the research. The response format was of a mixed variety which also helped in better determination of outcomes. The results are based on the percentage share of the sample for each question of the questionnaire. The Pie Chart is used to display the result.</p> <p>pg.</p> <p>1</p> <p>Chapter-1 GLOBAL STEEL SCENARIO &amp; INDIAN STEEL INDUSTRYIntroductionThough Iron and steel have been used by men for almost 6000 years, yet the modern form of iron and steel industry came into being only during the 19th century. The growth and development of iron and steel industry in the world until the Second World War was comparatively slower. But the industry has grown very rapidly after the Second World War. World production of steel, which was only 28.3 million tons (MT) in 1900, rose to 695 MT by 1992. The oil crisis of the seventies affected the entire economy of the world including the steel industry. The position started improving after 1983 and peaked at 780 MT in 1989. World Steel production is around 1322MT in 2007. Steel is crucial to the development of any modern economy and is considered to be the backbone of human civilization. The level of per capita consumption of steel is treated as an important index of the level of socioeconomic development and living standards of the people in any country. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation. All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development.</p> <p>STEEL INDUSTRY IN INDIASteel has been the key material with which the world has reached to a developed position. All the engineering machines, mechanical tools and most importantly building and construction structures like bars, rods, channels, wires, angles etc are made of steel for its feature being hard and adaptable. Earlier when the alloy of steel was not discovered, iron was used for the said purposes but iron is usually prone to rust and is not so strong. Steel is a highly wanted alloy over the world. All the countries need steel for the infrastructural development and overall growth. Steel has a variety of grades i.e. above 2000 but is mainly categorized in divisions steel flat and</p> <p>pg.</p> <p>2</p> <p>steel long, depending on the shape of steel manufactured. Steel flat includes steel products in flat, plate, sheet or strip shapes. The plate shaped steel products are usually 10 to 200 mm and thin rolled strip products are of 1 to 10 mm in dimension. Steel flat is mostly used in construction, shipbuilding, pipes and boiler applications. Steel long Category includes steel products in long, bar or rod shape like reinforced rods made of sponge iron. The steel long products are required to produce concrete, blocks, bars, tools, gears and engineering products. After independence, successive governments placed great emphasis on the development of an Indian steel industry. In Financial Year 1991, the six major plants, of which five were in the public sector, produced 10 million tons. The rest of India steel production, 4.7 million tons, came from 180 small plants, almost all of which were in the private sector. India's Steel production more than doubled during the 1980s but still did not meet the demand in the mid-1990s, the government was seeking private-sector investment in new steel plants. Production was projected to increase substantially as the result of plans to set up a 1 million ton steel plant and three pig-iron plants totaling 600,000 tons capacity in West Bengal, with Chinese technical assistance and financial investment. The commissioning of Tata Iron &amp; Steel Company's production unit at Jamshedpur, Bihar in 1911-12 heralded the beginning of modern steel industry in India. At the time of Independence in 1947 India's steel production was only 1.25 Mt of crude steel. Following independence and the commencement of five year plans, the Government of India decided to set up four integrated steel plants at Rourkela, Durgapur, Bhilai and Bokaro. The Bokaro plant was commissioned in 1972. The most recent addition is a 3 Mt integrated steel plant with modern technology at Visakhapatnam. Steel Authority of India (SAIL) accounts for over 40% of India's crude steel production. SAIL comprises of nine plants, including five integrated and four special steel plants. Of these one was nationalized and two were acquired; several were set up in collaboration with foreign companies. SAIL also owns mines and subsidiary companies.</p> <p>GROWTH OF INDIAN STEEL SECTORIndia is amongst the cheapest producers of hot metal in the world. The cost advantage mainly arises from the abundant availability of cheap and good quality iron ore. Besides, overall manpower cost is also low. However, these advantages are nullified to some extent due to low labor productivity, high energy &amp; power costs and high finance charges. The expansion plans of steel majors are likely to put tremendous pressure on the availability of inputs and infrastructure</p> <p>pg.</p> <p>3</p> <p>resources within the country. The nation is endowed with large iron ore reserves, but their development and exploitation would require huge resources. Besides, the effects on the environment where virgin areas are being exploited needs to be addressed. Availability of coking coal is expected to remain a serious constraint. Coking coal supplies from public sector coal companies have been declining over the years, leading to higher imports. Traditional coking coal and coke suppliers such as China have also curtailed exports in order to feed their expanding iron &amp; steel industry. The steel industry needs to remain competitive by improving efficiency across the entire value chain in an integrated manner. Hence, logistics would be an important area of concern for the steel industry. This involves development of ports, smoother transportation to and from ports, rationalization of inland freight charges as well as better road movement facilities. During the early 90s, the Sponge Iron industry was especially promoted to provide an alternative material to steel melting scrap, which at that time was increasingly becoming scarce. Since then India has emerged as one of the largest producers of Sponge Iron. This provides good opportunities to steel industry as a substitute of scrap. Considering the erratic power supply position in the country as well as high power tariffs, rising scrap prices and plentiful indigenous iron ore reserves would mean that the most suitable steel making technology for India would be the integrated route.</p> <p>CONTRIBUTION INDUSTRY</p> <p>OF</p> <p>COUNTRIES</p> <p>TO</p> <p>GLOBAL</p> <p>STEEL</p> <p>The countries like China, Japan, India and South Korea are in the top of the above in steel production in Asian countries. China accounts for one third of total production i.e. 419m ton, Japan accounts for 9% i.e. 118 m ton, India accounts for 53m ton and South Korea is accounted for 49m ton, which all totally becomes more than 50% of global production. Apart from this USA, BRAZIL, UK accounts for the major chunk of the whole growth.</p> <p>DEMAND OF STEEL IN INDIADriven a booming economy and concomitant demand levels, consumption of steel has grown by 12.5 per cent during the last three years, well above the 6.9 percent envisaged in the National</p> <p>pg.</p> <p>4</p> <p>Steel Policy. Steel consumption amounted to 58.45 mt in 2006-07 compared to 50.27 mt in 200506, recording a growth rate of 16.3 per cent, which is higher than the world average. During the first half of the current year, steel consumption has grown by 16 per cent. A study done by the Credit Suisse Group says that India's steel consumption will continue to grow by 17 per cent annually till 2012, fuelled by demand for construction projects worth US$ 1 trillion. The scope for raising the total consumption of steel in the country is huge, as the per capita steel consumption is only 35 kg compared to 150 kg in the world and 250 kg in China. With this surge in demand level, steel producers have been reporting encouraging results. For example, the top six companies, which account for 70 percent of the total production capacity, have recorded a year-on-year growth rate of 13.4 per cent, 15.7 per cent and 11.7 per cent in net sales, operating profit and net profit, respectively, during the second quarter of 2007-08 We expect strong demand growth in India over the next five years, driven by a boom in construction (43%-plus of steel demand in India). Soaring demand by sectors like infrastructure, real estate and automobiles, at home and abroad, has put India's steel industry on the world steel map. The Steel Industry in India is poised for faster growth in the decade ahead as the industrial and economic development of the country gains pace. What however cannot be ignored is that increasing emphasis on globalization and liberalization will closely link the fortunes of the Indian steel industry to the global market. The domestic outlook for finished steel has been estimated as follows: Domestic Market Growth Outlook Growth Trajectory GDP @ 6.5% 2006-2007(million tons) 39.5 - 40.7 2011-12(million tons) 57.8 - 59.9 (Source: CPR) The total steel consumption of finished steel in India has been estimated to touch 60 million tons from the current level of over 40 million tons. It is important to note that despite the near doubling of the consumption level in the country, per capita domestic consumption would continue to be substantially below the world average, which is about 145 kg.</p> <p>pg.</p> <p>5</p> <p>Amongst the steel consuming segments, transportation of petroleum products, household appliances, and automobiles are expected to have the fast growth. However, even a modest growth of 4.4% growth in the construction sector will translate into a large increase in actual consumption volumes. Thus, construction will contribute towards a high proportion of incremental demand in future.</p> <p>Projected Consumption Growth of Finished Steel in Major Domestic Segments Segment 2006-07 Construction 4.9% Fabrication 5.5% Automobile 6.7% Transportation of Petroleum Products 21.6% Tube making 4.2% Household Appliances 7.9% 2011-12 4.4% 4.9% 6.0% 19.4% 3.8% 7.9% (Source: CPR)</p> <p>STEEL PRODUCTION IN INDIA</p> <p>India is one of the few countries where the steel industry is poised for rapid growth. Indias share in world production of crude steel increased from 1.5% in 1981 to around 3.5 % in 2004. While plant closures and privatization are rare in India, the private sector is considered to be the engine of growth in the steel industry and technological changes and modernization are taking place in both the public and the private sector integrated steel plants in India. Steel production of India accounted for 14.33 million tons in 1990-91, which gradually increased to 36.12 million tons in 2003-04, as shown in Table III. The Indian steel industry got a giant importance in the recent past when the Tata Steel purchased the Corus steel. Today India plays a significant role in the production of steel in the world. The Indian steel industry is growing at 8.74 % of CAGR. Steel demand continued to remain upbeat in 2008-2009 with consumption of finished steel growing by a decent 6.8% during April-may 2008. During same period import surged by 10 %, to 0.7 million tons, while export reported a 33% decline to 0.6 million tons. While imports and consumption of finished steel reported a healthy rise, production of the steel continued to rise at a tepid pace. During April 2008 finished steel output rose by a modest 3.8 %. Further in may it increased by 5.2%. Aggregate production growth during April-may stood at 5.1 % In view of no major capacities coming on-stream we estimate finished steel production to touch 60 million tons in</p> <p>pg.</p> <p>6</p> <p>2008-2009. On the basis for last year of 52.7 million tons, the steel production growth for 2008-2009 comes to around 14 %.</p> <p>PRODUCTION OF STEEL IN INDIA</p> <p>PRODUCTION OF FINISHED CARBON STEEL (In million tonnes)Year 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002 2002-03 2003-04 2004-05 Main Secondary Grand % Total 14.33 15.20 15.20 17.82 21.40 22.72 23.37 23.82 26.71 29.7 30.63 33.67 36.19 40.05 42.63 6 49.39 0 46.57 of share of</p> <p>Producers Producers 7.96 8.41 8.77 9.57 10.59 10.54 10.44 9.86 11.20 12.51 13.05 14.39 15.19 15.61 6.37 6.79 6.43 8.25 10.81 12.18 12.93 13.24 15.51 17.19 17.58 19.28 21.00 24.44</p> <p>Secondary Producers 14.5% 44.7% 42.3% 46.3% 50.6% 53.6% 55.32% 57.32% 58.07% 57.88% 57.4 % 57.27 % 58.03 % 61.02 %</p> <p>2005-06 (Prov.)</p> <p>16.236</p> <p>26.400</p> <p>61.92 %</p> <p>2006-07</p> <p>17.390</p> <p>32.000</p> <p>64.79 %</p> <p>2007-08</p> <p>(Apr-Jan 14.675</p> <p>31.900</p> <p>68.49 %</p> <p>pg.</p> <p>7</p> <p>08)</p> <p>5</p> <p>INDUSTRY STRUCTURE The iron and steel industry in India is organized in three categories viz. main producers, other major producers and the secondary producers. The main producers and other major producers have integrated steel making facility with plant capacities over 0.5 MT and utilize iron ore and coal/gas for production of steel. In 2004-05, the main producers i.e. SAIL, TISCO and RINL had a combined capacity of around 19.3 MT and capacity utilization was 104 percent. The other major producers comprising of ESSAR, ISPAT and JVSL had a capacity of 6.4 MT with capacity utilization of 97 percent. The secondary sector includes sponge iron producers, mini blast furnaces, electric arc furnaces, rollers etc. This sector has a production capacity of 32.7 MT in 2004-05</p>...