1. ORISSA SPONGE IRON AND STEEL LTD.
(An ISO 9001,14001 & OHSAS - 18001 CERTIFIED
COMPANY)
Envisioning Growth……
Enriching Lives.……
SPONGE IRON STEEL POWER
2. Engaged in 3 major Business verticals:
Sponge Iron
Steel
Power Generation
• First sponge iron plant in Asia ,promoted in the joint sector by the
Industrial Promotion & Investment Corporation of Orissa Ltd. and Tor-
steel Research Foundation India (TRFI).
• 1st to develop the technology known as the OSIL process which was
patented in 1988 to produce sponge iron using high grade coal instead of
the traditional method of using coal.
• The technology has been adopted for use in projects funded by IDBI,
World Bank (IFC) and the German Development Bank (DEG).
• One of the few companies in India to receive carbon credits from the
WORLD BANK due to its contribution in clean environment. As per
the United Nations Framework of Climate Changes (UNFCCC)
3. PRODUCTION CAPACITY
• Two nos. Rotary Kiln based Sponge Iron plants: One of production
capacity 100,000 TPA and the other having 150,000 TPA capacities.
• Two nos. Waste Heat Recovery Power Plants: One with 15 MW capacity
and another having 30 MW capacity.
• One Steel Billet Plant of 1, 00,000 TPA capacity, through induction
furnace route.
• One Mini Blast Furnace and a Sinter Plant to produce 500,000 Tons of
Hot Metal commissioned in April 2007.
• The Steel producing capacity was enhanced to 500,000 TPA in 2008.
LOCATION:
Manufacturing plant of OSIL is situated at Palaspanga on the NH-215 and is 20
km away from Keonjhar district headquarter of Orissa
6. SWOT ANALYSIS
STRENGTHS WEAKNESS
• OSIL has its customers, suppliers • There is labor union in the
spread throughout India, which organization due to which there have
enables them to acquire resources been many internal disputes, strikes
and lock outs.
and dispatch goods easily.
• Most important is that company has
• The plant is situated in very close more employees than required, which
proximity of iron ore and coal decreases their efficiency and utilization
deposits; hence availability of raw of resources.
materials is easy. • The company entirely depends on
• High employee morale, resulting in external transportations like railways
high retention of employees. and shipping due to which they have to
• The power plant helps them sometimes suffer loss as dispatch gets
delayed.
generate power on their own which
• Although the plant is situated near
decreases the production cost of the
mines area the movement of raw
company and in turn helps in profit materials could not be done due to
making of the company due to the break down of roads.
carbon credit it receives from the
World Bank.
7. OPPORTUNITIES THREATS
• Globalization of India economy bound to • Day by day the employees are hopping their
increase demand levels. job. Many industries are diversified into the
• Major steel units have come up like Arcelor steel producing and existing companies are
Mittal, Posco, Vedanta, etc, which means expanding their capacities, due to hopping
more customers in the plants proximity and of experienced employees there is a talent
in turn more demand for steel. crunch.
• Self power generation leading to lower cost
of production. • Increase in the cost of iron ore and coal has
• The coal based sponge iron segment has its direct effect on the profitability and the
witnessed rapid growth in numbers, company suffers from mismatch of cost of
promising a sound future for the industry, production and selling price of sponge iron.
this has led to increase in both capacity and
production. • Inadequate infrastructure in the vicinity of
• Manufacturing sector on a growth path, the company’s plant does not allow
which means there would be more accumulating adequate stocks of raw
requirement of sponge iron. material leading to production disruption.
• Company has enough resources to expand
it, to meet their increase demands.
8. FINDINGS
• High values towards its customers and employee.
• The break down of roads has been affecting the
productivity which in turn has lead to heavy losses in
the company.
• As it is located far away from the city employee face
difficulty in commuting due to road break down,
although bus facility is there.
• A highly motivating and innovative place. Almost all
the employees working are very highly qualified with a
high experience and they are very much helping.
